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Kerala: HC directs to produce report by Centre against Veena Vijayan's company

The central government had appointed a team of senior officials to investigate the CMRL company in Kochi, Exalogic, owned by the Chief Minister's daughter Veena, and KSIDC, a public sector organization.

Kerala: HC directs to produce report by Centre against Veena Vijayan's company rkn
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First Published Jan 15, 2024, 1:16 PM IST

Kochi: The High Court has directed to produce documents related to the Centre's investigation into the 'monthly payment' allegations related to Chief Minister Pinarayi Vijayan's daughter Veena Vijayan's company Exalogic Solutions. Although the investigation is underway, the Serious Fraud Investigation Office of the Union Ministry of Corporate Affairs has not hindered the investigation, the petitioner, Kottayam District Panchayat member and Adv. Shone George said to the court. The court informed that the petition will be considered on 24 January.

The central government had appointed a team of senior officials to investigate the CMRL company in Kochi, Exalogic, owned by the Chief Minister's daughter Veena, and KSIDC, a public sector organization. The investigation order was given based on the findings of the Income Tax Board after the 'monthly payment' controversy.

Inconsistencies were found earlier in a preliminary investigation that was based on a complaint made against Exalogic Solutions. According to reports, the union ministry demanded a thorough investigation of Veena's company in light of the findings. The financial transactions between Kerala State Industrial Development Corporation (KSIDC) and Cochin Mineral and Rutile Ltd. (CMRL) will also be investigated by a three-member investigative team.  A report regarding the same will be submitted in four months.

According to the order, Exalogics Solutions has committed several violations of the law. A detailed investigation was ordered after this became clear in the preliminary investigation conducted by the Registrar of Companies Bangalore. CMRL gave vague and evasive replies to the Registrar of Companies, Ernakulam. KSIDC was not even ready to reply. The order directed an investigation of the entire transactions of the three institutions in detail. Karnataka Deputy Registrar of Companies Varun BS, Chennai Deputy Director K.M. Shankara Narayanan, Pondicherry ROC, and A. Gokulnath are in charge of the investigation. 

Earlier, the Registrar of Companies had received a complaint seeking to investigate the transaction between Exalogic and CMRL. The investigation is being conducted under Section 210.1.C of the Companies Act, 2013. Earlier, the Income Tax Interim Settlement Board had found that CMRL illegally paid Rs 1.72 crore to Exalogic due to its relationship with the Chief Minister. Exalogic was found to have received this payment for services it did not perform.


 

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