Kerala: 'Tried, tested and failed strategy'... MoS Rajeev Chandrasekhar on CPM's outburst against ED probe

MoS Rajeev Chandrasekhar said that CPI(M) is trying to distract the investigation by ED into Veena Vijayan's monthly payment case by merely blaming the agencies.

Aishwarya Nair

First Published Mar 28, 2024, 1:16 PM IST | Last Updated Mar 28, 2024, 1:16 PM IST

Union Minister and NDA candidate for Thiruvananthapuram, Rajeev Chandrasekhar, dismissed the CPI(M)'s assertion that the Enforcement Directorate (ED) investigation into the monthly payment case involving the Chief Minister's daughter Veena Vijayan is politically driven, labeling it as a diversion tactic. Speaking at a press conference, Chandrasekhar stated that criminals typically deny their involvement in a crime and shift blame onto investigating agencies.

The Union Minister said that this is a 'tried, tested and failed strategy' of the ruling Left government when it comes to investigation and claiming it to be 'politically motivated'.

The ED filed a case under the Prevention of Money Laundering Act (PMLA) against Veena Vijayan's company Exalogic Solutions. It is believed that a speedy probe by the Serious Fraud Investigation Office (SFIO) led the ED to file a case. The allegation is that Kochi-based Cochin Minerals And Rutile Ltd (CMRL), a private company, made an 'illegal payment' of Rs 1.72 crore to Exalogic Solutions between 2017 and 2020, despite no services being provided.

The investigation stems from reports from the Income Tax Department regarding Veena's company Exalogic, the Kochi-based rutile mining company CMRL, and the state-owned KSIDC, which are now under scrutiny by the Enforcement Directorate (ED). Before registering an Enforcement Case Information Report (ECIR), marking the formal entry of the complaint lodged by the ED, the anti-money laundering agency had conducted preliminary investigations into the matter.

The ED's investigation primarily targets Exalogic, in addition to CMRL and KSIDC, where financial transactions will be meticulously examined for any irregularities. Exalogic has been served notices by the SFIO, under the Companies Act, demanding the submission of transaction documents to the Chennai office by March 15. Non-compliance may lead to legal repercussions. SFIO's actions have escalated following court orders to probe petitions filed by Exalogic Solutions and KSIDC. Notices have been issued to twelve firms in Kerala as part of the investigation.