Reports suggest that the Serious Fraud Investigation Office (SFIO) has started an investigation in the corporate office of Cochin Minerals & Rutile Limited (CMRL). The investigation is being carried out by a team led by SFIO Deputy Director Arun Prasad. The investigation commenced at 9 am on February 5. The investigation team has reportedly collected the employees’ statements. They were stopped from using their phones. Once the misappropriation is ascertained, SFIO can hand over the enquiry to the Enforcement Directorate (ED) and Central Bureau of Investigation (CBI).
When the Interim Settlement Board found that CM’s daughter had received Rs 1.72 cr from CMRL and they (CMRL) had given a statement that the company did not get any service from Exalogic, the Ministry of Corporate Affairs ordered an enquiry against Exalogic Solutions, owned by Veena Vijayan, the daughter of Chief Minister Pinarayi Vijayan. The Ministry has ordered a probe into the complaints against the company over its financial dealings. Not only CMRL, but also Kerala State Industrial Development Corporation (KSIDC) are likely to be probed into. It is to be remembered that the Ministry of Corporate Affairs had issued show cause notices to CMRL and KSIDC after the Interim Settlement Board found illegal payment of Rs 133 cr to trade union leaders, officials and politicians.
The Ministry’s order came in the wake of the Bengaluru-based Registrar of Companies (RoC) findings that various violations and offences under the Companies Act 2013 had taken place. Based on this report, the Centre took action to probe into the charges against Exalogic Solutions.
Now, the CPM State secretariat has decided to face the enquiry legally and politically. When the Income Tax Interim Settlement Board’s order came to light, CPM supported the Chief Minister’s daughter, Veena Vijayan, stating that it was a transparent deal between the two companies. There were complaints that a non-banking finance company, with CMRL’s owners as directors, had provided a loan of Rs 77.6 lakhs for four years, sans any collateral.
This journal had reported in August 2023 the shocking allegation that Veena Vijayan got the monthly payment for three years, 2017 – 20, from Cochin Minerals and Rutile Limited, an ilmenite company near Kochi, for some services which she was supposed to provide; but CMRL officials said, no service was rendered. According to the Income Tax Interim Settlement Board, functioning under Section 245AA of the Income Tax Act, the payment was Rs 1.72 cr. The New Delhi Branch of the Board had reportedly stated that these payments were made due to their excellent rapport with a top VIP. The controversy started back in January 25, 2019. Since then, the BJP, NDA, Opposition Congress, and Congress-led United Democratic Front (UDF) have been alleging that the Board was pointing the CM.
