CMRL case:SFIO chargesheet names Veena Vijayan as accused; Prosecution approved

Thiruvananthapuram: The Ministry of Corporate Affairs on Thursday, has granted permission for prosecution proceedings against Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan, in the CMRL payoff case on the basis of the Serious Fraud Investigation Office (SFIO) chargesheet. 

The charges have been levelled against Exalogic, CMRL Managing Director Sasidharan Kartha, CMRL, and a sister company. Investigations revealed that Veena Vijayan allegedly received Rs 2.70 crore without providing any services.

The sanction has been given based on the SFIO’s investigation report, which found irregularities in the CMRL-Exalogic transaction. Serious charges have been included in the SFIO’s chargesheet, with sections carrying a possible prison term of up to 10 years imposed against the accused.

Allegations of financial misconduct

Veena Vijayan and Exalogic are accused of illegally receiving Rs 2.70 crore from CMRL and another company, Empower India. Sasidharan Kartha and his wife are listed as directors of Empower India. Veena Vijayan, Sasidharan Kartha, Exalogic and CMRL have been charged under Section 447 of the Companies Act, which pertains to financial fraud. This section allows for imprisonment ranging from six months to 10 years and a fine amounting to three times the embezzled sum.

Legal proceedings to follow

With the prosecution application now sanctioned, trial proceedings can commence at the economic crimes court in Kochi. Summons will be issued to the accused, including Veena Vijayan. Additional charges have been filed against Sasidharan Kartha and members of the CMRL board of directors.

Investigators have uncovered an alleged embezzlement of Rs 182 crore within CMRL. The fraud was reportedly executed by inflating fictitious expenses and generating fake bills. The scheme was allegedly carried out through two companies—Nipuna International Private Limited and Sasja India Private Limited—both of which are linked to Sasidharan Kartha’s family.

This development follows a 14-month-long investigation initiated in January 2024. The case was initially examined by the Income Tax Department’s Interim Settlement Board and later scrutinised by the Registrar of Companies (ROC), before being further investigated by the SFIO. With the charges now formally filed, all eyes are on the legal proceedings to determine whether the Chief Minister’s daughter will face prosecution in the financial irregularities case.