What’s CMRL case, and how is it going to haunt CPM as Kerala CM’s daughter to face trial?
Kozhikode: The Kerala government and the ruling CPI(M) found relief as they proceeded to Madurai for the party’s 24th Congress after the Vigilance Court dismissed a plea seeking an investigation based on the findings of the Income Tax Settlement Board. The board had concluded that the Chief Minister’s daughter’s company received payments for services that were never rendered. On the same day that the party was lauded by its state units for securing consecutive terms in Kerala, a major development in the CMRL payoff case put it on the defensive. An investigation by the Serious Fraud Investigation Office (SFIO) has named Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan as an accused. The Union Ministry of Corporate Affairs has also granted permission to prosecute her.
The controversy first surfaced during the Puthuppally by-election, putting both the CPM and the government under pressure. The issue originated from an order by the Interim Settlement Board under the Income Tax Department, which revealed that Veena Vijayan’s company Exalogic Solutions had received payments from Cochin Minerals and Rutile Limited (CMRL) for non-existent services. Reports indicated that between 2017 and 2020, Veena’s firm had received approximately Rs 1.72 crore from CMRL.
Company representatives reportedly testified that the payments were made due to the firm’s connection with an influential individual. This led to allegations that CMRL’s ledger, which recorded illegal payments to political figures, also included the name of Chief Minister Pinarayi Vijayan alongside opposition leaders. While both the Chief Minister and Veena's husband and Minister P A Mohammed Riyas remained silent on the issue, the CPM actively defended her, arguing that the transactions were based on a legally valid agreement between Exalogic and CMRL.
The Opposition seized on the allegations, using them as political ammunition. BJP leader Shaun George moved the court seeking an SFIO investigation, which prompted the Enforcement Directorate (ED) to look into the matter. In October last year, SFIO officials questioned Veena Vijayan in Chennai.
Meanwhile, Congress MLA Mathew Kuzhalnadan escalated the matter through legal means. He filed a petition before the Thiruvananthapuram Vigilance Court, demanding an investigation into the transaction. The court dismissed the plea, citing a lack of evidence. Kuzhalnadan then approached the Kerala High Court, which also rejected his appeal, stating that the allegations were based on mere suspicion without supporting facts. Around the same time, a Kalamassery resident, Girish Babu, also sought a
Vigilance probe, but his plea was dismissed by the Muvattupuzha Vigilance Court, and his subsequent appeal in the High Court met the same fate. Girish Babu later passed away.
The SFIO investigation has now concluded that Exalogic, without providing any services, received Rs 2.70 crore from CMRL. In addition to Veena Vijayan, CMRL’s managing director Sasidharan Kartha, several other officials from CMRL and both companies have been named as accused. They have been charged with offences that carry a potential sentence of up to 10 years in prison. The SFIO has also reportedly found that CMRL illegally transferred approximately Rs 182 crore to various political leaders.
With the Chief Minister’s daughter formally named as an accused, the CPM finds itself once again on the defensive. Opposition leaders, including the BJP, have demanded the resignation of the Chief Minister on moral grounds. The mention of an “influential individual” in the Income Tax Settlement Board’s report is also expected to fuel political attacks. While the Opposition has suffered setbacks with the courts dismissing the Vigilance probe requests, the SFIO’s findings may now serve as a crucial weapon in their campaign.
As the CPM strategises for a historic third consecutive term in Kerala, how the party navigates the legal and political implications of this case will be closely watched.