Veena Vijayan, the daughter of Kerala Chief Minister Pinarayi Vijayan, is under scrutiny as her company, Exalogic Solutions, faces penalties for violating Company Law. Allegations have long surrounded Veena’s software business, and last year, the Income Tax Interim Settlement Board (ITISB) revealed that Exalogic Solutions received a monthly payment of Rs 1.72 crore from Cochin Minerals & Rutile Limited (CMRL) from 2017 to 2020.
Reports, first detailed in August 2023 and reiterated recently, suggested that Exalogic did not provide any services to CMRL during this period. The regulatory scrutiny raises questions about the financial transactions and services rendered, drawing attention to potential irregularities in the business dealings of the Kerala CM’s daughter.
In a significant development, the Registrar of Companies (RoC), Bengalooru, has reported a lack of convincing evidence regarding services rendered by Veena Vijayan’s company, Exalogic Solutions, to Cochin Minerals & Rutile Limited (CMRL). RoC alleges a violation of the Companies Act 2013 and proposes legal action, potentially involving imprisonment and penalties, as the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) consider a detailed inquiry.
RoC’s findings align with those of the Income Tax Interim Settlement Board (ITISB), indicating that Exalogic received Rs 1.72 crore from CMRL without providing any services. Notably, the State Government holds shares in CMRL, as per the Companies Act, but reports suggest that the company failed to inform the Board about dealings with Exalogic, raising questions about transparency.
Veena Vijayan’s Exalogic faced fines in February 2021 for relocating its registered head office without notifying RoC, a violation of Company Law. Additionally, allegations of fraudulent activities and attempts to halt Exalogic’s operations have drawn the attention of the Income Tax Department. RoC deems the submission of an audit report without an auditor’s ink and seal as a punishable offence.
RoC calls for an in-depth inquiry into the financial dealings between CMRL and Exalogic, dismissing GST documents as insufficient. The murky nature of the transactions prompts concerns about potential money laundering and corruption, warranting scrutiny under the Anti-Money Laundering (AML) and Prevention of Corruption Act (1988).
This revelation is expected to create turbulence in Kerala’s political, legal, and business realms, causing discomfort for Chief Minister Pinarayi Vijayan, Veena Vijayan, Minister Mohammed Riaz, and the Communist Party of India (Marxist) (CPM). CPM had staunchly defended Veena when the scandal emerged last year, and the party may find itself in a challenging situation if legal issues intensify.
As the financial transactions between Exalogic and CMRL face scrutiny, there is a potential for a legal battle with implications for money laundering and corruption. The mysterious nature of the service agreement calls for a thorough investigation to determine the legality of the payments and the services rendered during the agreement’s duration.
The Registrar of Companies’ recommendations have brought to light a complex web of financial irregularities involving Veena Vijayan’s Exalogic Solutions and CMRL. The call for a detailed investigation raises questions about transparency, corporate governance, and potential legal ramifications, putting key figures in Kerala’s political and business landscape under scrutiny. The outcomes of the inquiry will likely shape the future course of action and could impact the political dynamics in the state.