Kerala CM’s daughter embroiled in graft, got illicit payment of Rs 1.72 cr from a private company

A shocking report says that Veena Vijayan, daughter of CPM supremo and Kerala Chief Minister Pinarayi Vijayan, got a monthly payment for three years from 2017 – 2020, for some services to a private company that she was supposed to provide, but no service was rendered yet.

According to the Income Tax Interim Settlement Board, functioning under Section 245AA of the Income Tax Act, the payment got was Rs 1.72 cr. The New Delhi Branch of the Board has reportedly stated that these payments were made, thanks to their close association with a high-profile VIP. The controversy started back on January 25, 2019. Those days, IT was reported to have conducted a detailed and comprehensive investigation in the offices and residences of ‘important’ persons, including that of Veena Vijayan; then enquiry moved to Cochin Minerals & Rutile Limited (CMRL), a private company Veena Vijayan entered into agreements with.

The investigation brought to light concrete evidence of improper payment of substantial amounts of funds to media houses, trade union leaders and political VIPs. Also, a document which talks about agreements between Veena Vijayan and her IT firm Exalogic Solutions was discovered during the scrutiny of the residence of K S Sureshkumar, the Chief Financial Officer of CMRL.

Reports suggest that the investigation team scrutinised the records of tax payments from 2013 – 2014 to 2019 – 2020. It exposed a pattern of exaggerated expense and major tax evasion on the part of CMRL. As a result, IT took action against CMRL and its key officials, including S N Sasidharan Kartha, its MD.

The Income Tax Interim Settlement Board (ITISB), formed under Section 245AA of the IT Act, has concluded its operations, including investigations and deliberations. It is reported that the Board’s decisions are final, with no chance for appeals. ITISB’s role is to evaluate settlement applications from individuals on alleged tax evasion.

Reports suggest that Veena Vijayan and her firm Exalogic Solutions had agreed with CMRL in 2016 and 2017 to render services on IT, marketing consultancy and software services. And further investigations revealed that these services were allegedly never fulfilled. Despite CMRL MD’s initial claim of compliance with the contractual terms, his statement was challenged by the IT Department.

It is alleged that according to IT’s findings, a significant sum of Rs 1.72 cr was transferred to Veena Vijayan and Exalogic Solutions between 2017 and 2020. The ITISB’s Bench concludes that these funds were disbursed for services which were not actually provided at all.

CMRL officials have reportedly submitted that they are not aware of getting any services from Veena Vijayan and Exalogic. CMRL’s Chief Financial Officer K S Sureshkumar and Chief General Manager P Sureshkumar are among those officials.

Union Minister V Muraleedharan asked Chief Minister Pinarayi Vijayan if he was ready for any impartial enquiry. If he is not guilty, why should he worry about an enquiry, the Minister wondered. BJP State President K Surendran said, the latest revelation is shocking.

This is the latest controversy enveloping Veena Vijayan. Since the last couple of years, several allegations have been coming up against Veena Vijayan’s business in Bangalore and her alleged ‘undesirable’ business links.

BJP and Opposition Congress-led United Democratic Front (UDF) demand the resignation of the Chief Minister. But, in contrary to the expectations, UDF does not appear to be taking an aggressive posture against the Chief Minister, as there are allegations that it is because some prominent leaders are on the list.