The Opposition plans to raise the Rs 1.72 crore payment claim of the Chief Minister's daughter Veena Vijayan in the Assembly. The controversy erupted when Veena Vijayan allegedly received the amount from Cochin Minerals and Rutile Limited (CMRL) in monthly installments in the last three years.

Thiruvananthapuram: Kerala Chief Minister's daughter Veena Vijayan allegedly received Rs 1.72 crore from a private company Cochin Minerals and Rutile Limited (CMRL) in monthly installments in the last three years. According to reports, Veena and her company, Exalogic Solutions, had a contract with the CMRL to offer the latter IT, marketing consulting, and software services. The income tax department has reportedly claimed that no services were, however, provided. The issue is expected to create a ruckus in the assembly as the Opposition gears up to corner the LDF government on the matter.

CMRL Managing Director S N Sasidharan Kartha, however, refuted the allegations and told Asianet News that there were no financial dealings with Veena's firm and that the Income Tax Department had not seized the diary from his possession.

A contract for IT and marketing consulting services from Veena was signed with the CMRL in December 2016. In March 2017, a new contract for software services was made with Veena's firm, Exalogic. These indicated that Exalogic and Veena each have to receive Rs. 3 lakh and Rs. 5 lakh each month, respectively.

According to available data, Veena received a total of Rs 1.72 crore -- Rs 55 lakh in personal capacity and Rs 1.17 crore for Exalogic. 

On January 25, 2019, the Income Tax Department stumbled upon massive tax evasion when it conducted searches at the office and factory of CMRL and the residences of the MD and key officials. The searches were based on tax payment documents from 2013–14 to 2019–20.

The money was paid in monthly installments in accordance with the contract, according to CMRL Managing Director S N Sasidharan Kartha's statement to the Income Tax Department. The chief general manager and chief financial officer of CMRL, P Suresh Kumar and K S Suresh Kumar, testified that they were unaware of any services provided to the firm by Veena and Exalogic in accordance with the contract.

Kartha and company officials later tried to withdraw the statement through an affidavit. However, the Income Tax Department stood firm on the argument that the money was paid to Veena and Exalogic illegally.

The Income Tax Department argued that a total of Rs 1.72 crore was received by Veena and Exalogic during 2017–20, which is an "illegal transaction". A settlement board bench of Justices Amrapali Das, Rameshwar Singh, and M Jagadish Babu said the Income Tax Department has been able to establish on the basis of strong evidence that the money was paid for services not rendered.