Allegations against daughter’s IT firm: Kerala CM Pinarayi Vijayan says his ‘hands are clean’

‘Hands are clean’

The Chief Minister opened up about the controversies while concluding the debate on the Motion of Thanks to the Governor’s Policy Address in the Assembly.

With a smile, Vijayan said that he has had to listen to several such stories earlier as well and that the allegations wouldn’t affect him “because these hands are clean”.

“Before, the allegations were against my wife. Now, it has slowly shifted towards my daughter,” the Chief Minister said.

Vijayan also claimed that his daughter’s IT company was set up using the money given by his wife, which she had received as pension.

Earlier this month, Leader of Opposition in the state Assembly VD Satheesan demanded a CBI or Enforcement Directorate (ED) investigation into the allegations surrounding the now-defunct IT firm, in the wake of reported findings by the Registrar of Companies (ROC) of irregularities in the company.

Also Read: Kerala High Court asks Union government if it intends to conduct SFIO probe against CM’s daughter

The controversy

A controversy erupted in Kerala after the Malayalam daily Malayala Manorama reported last year that CMRL had paid a total of ₹1.72 crore to Veena, the Chief Minister’s daughter, between 2017 and 2020.

The news report cited the ruling of an interim board for settlement and said that CMRL previously had an agreement with Veena’s IT firm for consultancy and software support services.

It also alleged that although no service was rendered by her firm, the amount was paid on a monthly basis “due to her relationship with a prominent person”.

Veena is already facing the charge of committing financial fraud involving CMRL for over a year, with the Income Tax (I-T) Interim Settlement Board ruling that the private company paid Exalogic Solutions ₹1.72 crore between 2017 and 2020.

The agency observed that despite the money being accepted, no service was rendered to CMRL.

Meanwhile, sources in the MCA said it was an illegal transaction and that a probe would be conducted under a joint director at the Office of the Director General of Corporate Affairs in Bengaluru.

CMRL MD Kartha, in a sworn statement to the I-T Department, said, “Both these vendors (Veena and Exalogic) have not provided any work, services, software maintenance, consultancy, or any other form of service to our expectations till date. However, monthly payments are being made as per the agreements.”

Although the transactions were made through banks and such payments for business expenses were permissible, the board ruled that the transactions to Veena and Exalogic were “illegal” as no services were rendered.

Veena has faced charges of financial misappropriation in the past as well. She was accused of accepting favours to protect the accused in the sensational diplomatic-channel gold-smuggling case that rocked Kerala.

Also Read: Kerala CM’s daughter Veena — what is the Union Ministry probing?