CPM treading carefully on probe against Veena's firm

Thiruvananthapuram: In a significant development, the Union Ministry of Corporate Affairs has announced a probe against Exalogics Solutions, the firm owned by Kerala Chief Minister Pinarayi Vijayan's daughter Veena Vijayan.

With the Lok Sabha elections in the corner, this is considered as a major blow to Kerala’s ruling party. 

The CPM has described the event as being politically motivated and vowed to resist such ‘attacks’ vehemently. 

The party will try to settle the controversy which erupted on the basis of the findings of the Income Tax Interim Settlement Board (ITISB) report as a done and dusted affair. However, the latest probe ordered by the Union Ministry is considered a definite setback. Veena is expected to take up the legal battle all by herself. Special care will be taken to ensure that the controversy does not affect the prospects of the party. The organisation’s official stance on the issue is expected to be revealed by state secretary MV Govindan in today’s press conference.

CPM had earlier described the transaction between CMRL and Exalogic Solutions owned by Veena Vijayan as being completely ‘transparent’. The finance department had also stated that there was evidence for taxes being filed in the states of Kerala and Karnataka. Giving an explanation in the legislative assembly, Pinarayi had termed the entire episode as being a malicious campaign launched by his rivals.         

Previously, a preliminary inquiry based on a complaint filed against Exalogics Solutions revealed irregularities. Based on the findings, the union ministry is said to have called for a detailed probe against Veena's company. The three-member probe team will also examine the financial dealings between Cochin Mineral and Rutile Ltd. (CMRL) and Kerala State Industrial Development Corporation (KSIDC). A report regarding the same will be submitted in four months. 

Last year, a controversy erupted in the state after it was reported that CMRL had paid Rs 1.72 crore to the CM's daughter between 2017 and 2020.

According to the reports, CMRL had an agreement with Veena's IT firm for consultancy and software support services. Although no service was rendered by her firm, it was alleged that CMRL paid the amount on a monthly basis "due to her relationship with a prominent person". 

Evidence also cropped up that showed the company had dealings with top leaders of both the ruling CPM as well as the opposition Congress-led UDF.

The issue was first taken up by first-time Congress MLA Mathew Kuzhalnadan.

On Saturday, speaking to the media after the probe order came, he asked if Veena Vijayan had received the money as alms as neither she nor her company did any work for CMRL at all.

"It's not just one company from which her firm received money. The day when this case first surfaced last year, it was the CPM state secretariat which defended Veena's firm stating that everything is fair as she is a professional. Now I want to hear from them again on this new probe order. What's also very important is a state government company- KSIDC is also going to be probed, so wish to hear from State Industries Minister P. Rajeev about this," said Kuzhalnadan.

Leader of Opposition V. D. Satheesan said they are the least excited about this probe as all know the CPM and the BJP are in an "unholy alliance".

“Just look into the gold smuggling case, the manner in which the SNC Lavalin case has been adjourned for years (both cases where Vijayan's name surfaced) and also the Karuvannur bank scam (where top leaders of the CPI(M) are in the dock), after an initial noise by central agencies, things went into a slumber. Just wait for things to unfold as with the Lok Sabha polls round the corner, there is something cooking up between the CPI(M) and the BJP, so we are the least excited," said Satheesan. 

As of now, a three-member-team has been asked to investigate the operations of Exalogic Solutions. BS Varun (Deputy ROC-Karnataka), KM Shankarnarayan (Deputy Director-Chennai) and Gokulnath (ROC-Puducherry) will submit a report within four months to the Director General of Corporate Affairs.    

The company registrar in Ernakulam has submitted a report expressing dissatisfaction over the explanations given by CMRL and Exalogic Solutions in the incident. KSIDC chose not to respond. As a result, an investigation has been launched into the affairs of the companies as per the Companies Act, 2013 Section 210 (C).