The controversy originated when the Enforcement Directorate (ED) registered an Enforcement Case Investigation Report (ECIR) concerning alleged monthly payments linked to Veena’s company, Exalogic Solutions Private Ltd.
Published Oct 13, 2024 | 1:53 PM ⚊ Updated Oct 13, 2024 | 1:53 PM
Veena Vijayan interrogated by SFIO in monthly pay-off controversy(PAMuhammadRiyas/Facebook)
The Serious Fraud Investigation Office (SFIO) officially recorded the statement of Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan, in connection with the controversial monthly pay-off case.
Veena appeared at the SFIO office in Chennai last Wednesday, where she provided her statement to investigating officer Arun Prasad. This marks a significant development in the case, which has been under SFIO scrutiny for the past ten months.
Sources indicate that Veena has been questioned twice as part of the investigation, although details regarding her statements and the investigation’s direction remain under wraps. The SFIO is expected to release a final report before 12 November, which could contain impactful revelations related to the ongoing probe.
Union Ministry of Corporate Affairs (MCA) asked the Registrar of Companies (ROC) in Bengaluru to initiate a probe against Veena, who is also the wife of Kerala’s Tourism and Public Works Minister PA Muhammed Riyas.
This came after the Bengaluru ROC wrote to the MCA that the financial dealings between Kochi-based mineral sand processing firm Cochin Minerals and Rutile Limited (CMRL) and Veena’s software company would fall under the Prevention of Money Laundering Act of 2002.
The ROC also recommended investigations into the dealings by central investigation agencies like the Enforcement Directorate (ED) and the CBI. The ROC pointed out that Exalogic failed to provide documents supporting its claim that it accepted money in return for services rendered to CMRL.
It may be noted that the public-sector Kerala State Industrial Development Corporation (KSIDC) holds a 13.4 percent stake in CMRL.
The controversy erupted when the Enforcement Directorate (ED) registered an Enforcement Case Investigation Report (ECIR) concerning alleged monthly payments linked to Veena’s company, Exalogic Solutions Private Ltd.
The Kochi unit of the ED initiated this inquiry under the Prevention of Money Laundering Act, 2002, following a report by the Income Tax Interim Settlement Board (ITSIB) in August 2023. The report indicated that Veena’s company received ₹1.72 crore in monthly payments from Cochin Minerals and Rutile Ltd. (CMRL) without any documented evidence of services rendered in exchange.
The SFIO’s ongoing investigation aims to probe the financial dealings surrounding this case, including the roles of individuals and entities mentioned in the ITSIB report. Besides Veena, the investigation will also focus on CMRL and the Kerala State Industrial Development Corporation (KSIDC).
In February, the High Court of Karnataka dismissed a petition from Exalogic Solutions questioning the Ministry of Corporate Affairs (MCA) about the SFIO investigation.
The MCA had informed the court that illegal payments amounting to Rs.135 crore had been made by CMRL to various political figures and entities, including Exalogic, prompting the probe.
Governor Arif Mohammad Khan had told reporters that the controversy surrounding the irregular financial dealings involving Veena Vijayan was serious and required a thorough investigation.
“As per media reports, the allegations against Veena are very serious,” said the Governor.
“I would duly examine them as they are based on findings of the Income Tax (I-T) department,” he added
Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar had said an investigation was justified as the “so-called” software firm (Exalogic) had allegedly received hundreds of crores of rupees from companies without providing any service.
“I welcome the decision of Karnataka High Court to allow this investigation…into sitting CM Pinarayi Vijayan’s daughter’s company receiving mysterious payments without delivering any service,” he said.
Leader of Opposition in the State Assembly VD Satheesan said the plea in the high court had indicated that the chief minister and his daughter were afraid of the SFIO probe. “It also shows that his (CM’s) hands are not clean,” the senior Congress leader had said.
Congress MLA Mathew Kuzhalnadan, who was the first to raise allegations of financial irregularities against Veena’s firm, said the court order indicated that the probe was not politically motivated as claimed by the CPI(M) and questioned whether the Left party was willing to withdraw from its stand that there has been a political witch hunt against the chief minister.
K. Muraleedharan, former Lok Sabha member, stated that the Congress suspects this could be a political drama staged ahead of the upcoming by-elections. He added that the party will investigate whether any deal has been made behind the scenes.
(Edited by Ananya Rao)
