Kozhikode: Laker India Corp, a firm linked to T Veena, daughter of Opposition Leader Pinarayi Vijayan, is facing questions over its GST number and local licence amid the ongoing Enforcement Directorate (ED) investigation into the CMRL-Exalogic financial transactions.

The company operates from Pantheerankavu in Kozhikode. Dr Anees Arakkal, one of its owners, has rejected allegations that Laker India is merely a ‘paper company’ and said it has the necessary legal registrations and licences.

Why is Laker India facing questions?

A 14-digit GST number displayed on an A4 sheet at the company's premises has triggered the latest controversy. GST identification numbers normally contain 15 digits.

The number displayed by Laker India was reportedly checked on the GST portal, where no such number was found. This has led to allegations that the GST number displayed by the company is not valid.

The issue comes after recent ED searches linked to its probe into transactions between CMRL and Exalogic, a company associated with Veena. Laker India Corp is a partnership firm involving Veena and Dr Anees.

The company lists office, warehouse, depot, wholesale and retail activities, including medical equipment distribution, among its business operations.

What does the ‘paper company’ allegation mean?

The term ‘paper company’ or ‘shell company’ generally refers to a business alleged to have little or no actual business activity despite existing as a registered entity. Such entities can, in some cases, be used to conceal ownership, route money or disguise transactions, although the term itself does not establish that a company has engaged in any illegal activity.

In Laker India's case, questions have arisen partly because its listed premises is a small single room that has reportedly remained locked for long periods.

The building owner has said the room was rented in Dr Anees' name around three years ago to store medical equipment. He said rent was paid regularly but that he was unaware of any connection with Veena.

What about the local licence?

Laker India had applied to the Olavanna grama panchayat for a licence for its office. The application was returned after officials sought corrections relating to technical issues and document formats.

The company says the necessary corrections are being made and that it will resubmit the application and complete the remaining procedures.

What Dr Anees Arakkal says

Dr Anees has called the allegations against Laker India a defamation campaign and rejected the suggestion that it is a paper company. He said the firm was established in compliance with the legal requirements of the Central and state governments.

He said Laker India has GST registration, MSME/Udyam registration and a wholesale pharmacy licence. He also maintained that the company follows transparent business practices and prescribed standards and has the support of several customers.