Kerala: 'Probe against Veena Vijayan's firm is politically motivated...' says CPI(M)

synopsis

Veena Vijayan

Thiruvananthapuram: The  Union Ministry of Corporate Affairs has ordered an investigation into Exalogic Solutions, the company that Veena Vijayan, the daughter of Kerala Chief Minister Pinarayi Vijayan, owns. The investigation order was given based on the findings of the Income Tax Board after the 'monthly payment' controversy. Asianet News has received the inquiry order.

The CPM state secretariat has declared that the investigation initiated by the Center against Exalogic in the monthly payment controversy is politically motivated. Consequently, the CPM state secretariat has decided to disregard the central government's actions, maintaining its stance that the inquiry is driven by political motivations. Earlier, leaders of the CPM had expressed similar sentiments, characterizing the central government's move as politically motivated. Following these statements, the CPM state secretariat has chosen to dismiss the central inquiry and the ensuing controversy.

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. 

Officials from the Registrar of Companies in three states are overseeing the investigation, with a stipulated timeframe of four months for its completion. A comprehensive report is expected to be submitted after the inquiry. Earlier, the Income Tax Interim Settlement Board uncovered that CMRL had allegedly made an illicit payment of Rs 1.72 crore to Exalogic, linked to Chief Minister Pinarayi Vijayan. Exalogic was accused of receiving this payment for services that were not rendered. In response, the Chief Minister and the CPM contended that the amount was rightfully received for services provided.