Trouble mounts for Exalogic; firm owned by Kerala CM's daughter made 'mysterious transactions', says ROC
In the latest development, the Bengaluru Registrar Of Companies (ROC) report claims that Kerala Chief Minister Pinarayi Vijayan's daughter Veena Vijayan's firm Exalogic Solution has failed to provide documents and made some 'mysterious' transactions to CMRL.
FollowThiruvananthapuram: In a major development linked to the controversy involving Kerala Chief Minister's daughter Veena Vijayan's company Exalogic Solution, Asianet News has exclusively obtained information from the Bengaluru Registrar Of Companies (ROC) that the firm has not produced any document to prove that it has received money for the services rendered to from Cochin Mineral and Rutile Ltd. (CMRL). The ROC report led to a detailed investigation by the Ministry of Corporate Affairs. Asianet News has obtained the information from the Bengaluru Registrar of Companies report.
Also read: Centre orders probe against Exalogic Solutions, company owned by Kerala CM's daughter Veena Vijayan
It is clear from the ROC report that mysterious transactions took place between both companies. An inquiry conducted by the Bengaluru Registrar of Companies said that no documents were submitted regarding CMRL's advertisement for software services or any communication between CMRL and Exalogic before or after the transaction. The report also states that neither Exalogic nor CMRL could present the contract details. In its reply to the Bengaluru ROC, Exalogic only explains that GST has been paid on the money received. The ROC found that Exalogic had not produced any evidence as to why it received the money.
According to the Bengaluru ROC's preliminary investigation report, action can be taken against Exalogic under Section 447 against fraud in company affairs and Section 448 against falsification of documents under the Companies Act 2013. These are sections punishable by imprisonment and a fine. The finding calls for an examination of the books of accounts of Exalogic and CMRL for further investigation. CMRL also has a share of the state government. As per the Companies Act, the board must be notified when a related party transaction is entered into.
However, the CMRL board was not informed of the transaction with the CM's daughter's company. This is a violation of Section 188.
The previous findings of the Income Tax Interim Settlement Board order that Exalogic received money for services not rendered are the same as in the ROC report. The main argument of the Chief Minister and the CPM was that the Interim Settlement Board ordered without hearing Exalogic's side. However, it is clear from the Bengaluru ROC report that despite the ROC seeking details, Exalogic could not produce a single document.
