Union government approves legal action against Kerala CM’s daughter T Veena in CMRL payment case

SFIO charges T Veena and others over unjustified payments from CMRL

In a notable development affecting the Left Democratic Front (LDF) in Kerala, the Union Ministry of Corporate Affairs has authorized prosecution against T Veena, daughter of Chief Minister Pinarayi Vijayan. The charges relate to alleged unlawful payments made by Cochin Minerals and Rutile Limited (CMRL).

The decision was made following a charge sheet filed by the Serious Fraud Investigation Office (SFIO) with the Special Court for Economic Offences in Kochi.

SFIO findings: No services rendered for Rs.2.73 crore payment

According to the SFIO, Veena’s company, Exalogic Solutions, received Rs.2.73 crore from CMRL despite not providing any IT-related services. The agency stated that although a formal agreement existed, the financial transactions were fraudulent.

Initial concerns arose on August 8, 2023, when reports indicated that Exalogic had accepted Rs.1.72 crore from CMRL between 2017 and 2020 without offering services. Subsequently, the Central government assigned the SFIO to investigate the matter thoroughly.

Multiple individuals and firms named in 160-page complaint

The SFIO’s 160-page complaint names Veena, CMRL Managing Director Sasidharan Kartha, and 25 others as accused parties. The list includes companies such as CMRL, Exalogic Solutions, and Empower India Capital Investments.

The SFIO concluded that Veena had misused funds channeled through the subsidiary firm. She now faces prosecution under Section 447 of the Companies Act, 2013, concerning corporate fraud cases where either Rs.10 lakh or one percent of the company’s turnover is involved. Conviction under this section could result in six months to ten years of imprisonment and fines amounting to triple the defrauded sum.

The total amount received by Exalogic, according to the SFIO, stood at Rs.2.70 crore. Separately, the Income Tax Interim Settlement Board, in a 2023 report, confirmed a Rs.1.72 crore payment based on statements from the CMRL staff.

Political fallout: Opposition demands resignationThe The

Opposition Leader, V D Satheesan, called the development “extremely serious,” stating that the SFIO’s charges substantiate claims that T Veena received money without offering any services. He emphasized that her status as the Chief Minister’s daughter played a role in the transactions.

Satheesan urged Chief Minister Vijayan to take moral responsibility and step down, arguing that it is inappropriate for him to stay in office while his daughter faces criminal prosecution. He also pressed the CPI(M) leadership to clarify their stance on the issue.

“All the allegations made by the opposition regarding the monthly allowance have now been validated,” Satheesan added, questioning continued support for the Chief Minister amid the scandal.

The SFIO’s findings have intensified political tension in Kerala, raising questions about ethical governance and the responsibilities of public officials. As the legal process unfolds, the focus remains on transparency and accountability in public and corporate dealings. The developments in the case against T Veena could have lasting impacts on both the state’s political landscape and public trust.

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