Registrar of Companies wants Kerala CM's daughter Veena Vijayan prosecuted for Exalogic irregularities

Kerala CM Pinarayi Vijayan's daughter Veena Vijayan's firm Exalogic Solution violated rules while applying to freeze the company, says a report by the Registrar of Companies (ROC).

Aishwarya Nair

First Published Jan 18, 2024, 10:03 AM IST

Thiruvananthapuram: In a crucial development, the Registrar of Companies (ROC) has found that the Kerala Chief Minister's daughter Veena Vijayan has falsified documents in connection with her Bengaluru-based firm Exalogic Solution. It was discovered that Exalogic Solution's application and affidavit, which were submitted to freeze the company, contained incorrect details. According to the Bengaluru ROC assessment, Veena has to be prosecuted.

Also read: Trouble mounts for Exalogic; firm owned by Kerala CM's daughter made 'mysterious transactions', says ROC

The Exalogic company has already been accused of being frozen to conceal several things. In addition to naming Exalogic and Veena, the ROC Bangalore investigation also pointed out anomalies in freezing. According to the report, Veena Vijayan has blatantly fabricated the documents that were filed to the ROC to freeze the company.

Exalogic lacked sufficient qualifications to apply to freeze the company. Veena Vijayan's company broke a few significant rules. Companies that have not conducted transactions for two years are the only ones eligible to request a freeze. The company submitted its application to freeze its operations in 2022. ROC's examination, however, discovered that Exalogic possessed a record of the May 2021 transaction.

Tax obligations or ongoing legal actions are not eligible for freezes. According to Exalogic's application, there are no pending court cases or unpaid taxes. However, the director of Exalogic received notification of an outstanding income tax in 2021. Exalogic was required to pay income tax and interest totaling Rs 42,38,038. Veena and Exalogic prepared fake certifications of compliance with all requirements while hiding all of this. Additionally, this is against the Companies Act's regulations. The MSC-3 document to be submitted after the company was frozen in November 2022 was also not produced.

Forging documents and falsifying information, Exalogic and Veena Vijayan will be subject to penalties under Sections 447, 448, and 449 of the Indian Penal Code, which include prison and fines.

As per the report, there is a suggestion to prosecute Kanthaswamy Thyagaraju Ilayaraja, the chartered accountant who verified Veena Vijayan's and the company's documents. The investigation states that Veena should face legal action in addition to a fine for her violations. Additionally, it is advised that the company's frozen action be lifted if documents are falsified.

Last year, a controversy erupted in the state after it was reported that CMRL had paid Rs 1.72 crore to the CM's daughter between 2017 and 2020. A huge fraud was alleged between Veena’s company Exalogic Solutions and Cochin Minerals and Rutile Limited (CMRL), a black soil mining company.

It was on the basis of this report that the Ministry of Corporate Affairs issued an order to investigate complaints against Veena's firm.

Last Updated Jan 18, 2024, 10:03 AM IST