Kerala: Law Minister P Rajeev has dismissed the Serious Fraud Investigation Office (SFIO)’s report naming Chief Minister Pinarayi Vijayan's daughter, T Veena, in an alleged illegal payment scandal as politically driven.

Rajeev said that already three vigilance courts and the Kerala High Court have said that there was no evidence of corruption in connection with the alleged financial transactions between private mining company Cochin Minerals and Rutile Ltd (CMRL) and Veena's now-defunct IT firm, Exalogic.

"So, the judicial system and the public have given a clean chit to the state government and the CM in the matter. Therefore, obviously, what has happened is politically motivated against the party and the government," he told reporters in Madurai, Tamil Nadu.

He contended that it also indicated the use of probe agencies for political purposes as other findings in the probe carried out by the SFIO have not been revealed.

What is the CPM’s stance on the SFIO findings?
Ruling CPM's state secretary M V Govindan called for a thorough review of the SFIO charge sheet, questioning the timing of the investigation’s findings. He noted that the Delhi High Court is set to hear a plea challenging the SFIO probe in July, suggesting that the recent developments could be part of a larger political agenda.

Govindan emphasised that neither the Kerala government nor the Chief Minister had any role in the financial transactions between CMRL and Exalogic. He also highlighted that the courts had previously dismissed allegations linking the Chief Minister to corruption in the case, reinforcing the party’s stance that the latest accusations are unfounded.

Senior CPM leader K K Shailaja questioned the timing of the SFIO’s findings, suggesting that the case had been brought forward to target the party during its ongoing Party Congress. She dismissed the accusations as politically motivated and unlikely to hold up in court, arguing that past vigilance probes had already cleared the allegations.

Shailaja also pointed out that the agreement between Exalogic and CMRL was a standard contractual arrangement, where payments were scheduled in advance. She stated that CMRL itself had never raised concerns about Exalogic’s failure to provide services, making the allegations baseless.

What are the next legal steps?
Reports indicate that the Union Ministry of Corporate Affairs has approved prosecution proceedings based on the SFIO investigation, which uncovered a Rs 182-crore financial fraud within CMRL. The fraud allegedly involved inflating expenses and generating fake invoices.

Neither the Chief Minister, who is currently in Madurai, nor Veena have reacted to the reports claiming that the investigation found that she had received Rs 2.70 crore from a private mining company without providing any services.

The controversy follows the Kerala High Court’s recent dismissal of Congress MLA Mathew Kuzhalnadan’s plea seeking an investigation into Vijayan’s involvement in the case. The court ruled that the MLA had failed to provide sufficient evidence to support corruption claims against the CM and his daughter.

As political tensions rise, the ruling CPM continues to defend Veena and the government, maintaining that the case lacks merit and is part of a broader political strategy against the party.