CPI(M) seeks apology from Congress MLA Mathew Kuzhalnadan over allegations against CM Pinarayi’s daughter

Related: Kerala Governor says allegations against daughter of CM Pinarayi Vijayan serious

Asks media to stop their ‘stories’ 

Balan also asked the media to stop their “stories” on the issue since the GST department has clarified that Veena had paid IGST on her transactions with Cochin Minerals and Rutile Limited (CMRL).

Responding to Balan’s remarks, Kuzhalnadan said he had not forgotten what he had said and if there had been a mistake on his part, he had no problem in apologising.

However, the Congress MLA from Muvatuppuzha said that the senior CPI(M) leader should be ready to hear his side on the subject.

Kuzhalnadan said it would be best left to the people to decide on who should apologise based on what he had to say, the information received from the Finance Department, and other details of the issue.

He also said more clarity was required on the issue.

Also read: Kuzhalnadan and the repercussions of targeting CPI(M)’s ‘first family’

The allegations

The GST department’s clarification came amidst a raging row over financial transactions between Veena’s firm and the minerals company.

The Congress MLA said the main issue was the money that the chief minister’s daughter and her firm received from a private company and no one should try to shift the goalpost now.

“The legal status, even today, of the money she got is that of illegal enrichment,” he said.

Kuzhalnadan had raised corruption allegations against Veena in connection with the transaction between her firm and the Kochi-based minerals company.

He also sought to know whether Veena had remitted IGST for the over ₹1 crore that she had received from the minerals company.

The MLA also demanded a vigilance probe into the corruption allegations.

In a letter, the state tax department informed the Congress legislator that during the verification, it was found that Veena’s company had remitted the IGST for the amount that she received from CMRL. However, the letter didn’t mention any other details, including the tax amount.

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The controversy

A controversy erupted in Kerala recently over some financial transactions between the Kochi-based private company and Veena and her IT firm.

Evidence showed that the company had dealings with top leaders of both the ruling CPI(M) as well as the opposition Congress-led UDF.

The issue came to the fore when Malayalam daily Malayala Manorama created a sensation by carrying the news that Vijayan’s daughter Veena had allegedly received ₹1.72 crore from CMRL in monthly installments over the past three years.

The news report, citing a ruling of an Interim Board for Settlement, said the Kochi-based company previously had an agreement with Veena’s IT firm for consultancy and software support services.

Even though no service had been rendered by her firm, the amount was paid every month “due to her relationship with a prominent person”, the report said, citing the deposition of the minerals company authorities before the Income Tax Department.

Also read: Why the presence of Sunil Kanugolu at Congress meet irked CM Vijayan

CM rubbished charges

However, Vijayan rubbished the charges and said the allegations were made to tarnish his image and defame him.

Earlier, sources in the I-T Department told South First that the CMRL had conducted unaccounted-for transactions of ₹134 crore between 2013 and 2020.

Out of this amount, ₹95 crore was paid to politicians, their immediate family members, media houses, officials, and some media persons, added the sources.

The public-sector Kerala State Industrial Development Corporation (KSIDC) has a 13.41 percent share in the CMRL.

The Opposition is now urging the state government to prompt the KSIDC to initiate legal action against the CMRL for financial fraud committed.

The I-T Department has said the company inflated its losses to pay politicians, who would have otherwise opposed the environmental degradation caused by the company on the mineral-rich Kerala coast.

According to reports, Veena and her firm, Exalogic Solutions, had a contract with the CMRL to offer the latter IT, marketing consulting, and software services.

The I-T Department reportedly claimed that no services were provided.

(With PTI inputs)