In a significant development, Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan and wife of state minister P.A. Mohammed Rias, faced a setback as the Karnataka High Court ruled in favour of allowing the Serious Fraud Investigation Office (SFIO) to continue its investigation into allegations concerning financial transactions between CMRL, a black sand mining company, and Exalogic Solutions, a firm owned by Veena Vijayan. The decision, delivered on February 16, dealt a heavy blow to Veena Vijayan.
The controversy stems from findings by the Income Tax Interim Settlement Board, which revealed that Veena Vijayan received Rs 1.72 crore from CMRL in monthly instalments. Veena Vijayan had petitioned the High Court seeking a stay on the SFIO investigation, which commenced in January 2021.
The Registrar of Companies (RoC) had previously taken statements from Veena in July 22, 2022, in connection with the case. Veena Vijayan faced penalties following her statement to the RoC officials.
Veena’s legal counsel argued that since the RoC inquiry was ongoing, SFIO should not conduct a separate investigation. However, the Karnataka High Court accepted SFIO’s assertion that its jurisdiction extends beyond that of the RoC and has the capacity to unravel any mysteries surrounding the case.
SFIO contended that since Exalogic Solutions had not provided any services to CMRL, an investigation into the matter was imperative. Therefore, SFIO has been granted permission to examine documents related to Exalogic and Veena Vijayan.
Additional Solicitor General Kuloor Aravind Kamath, representing SFIO, informed the court that serious fraud had occurred in CMRL’s dealings, with investigations commencing in January 2021. Furthermore, SFIO revealed that Exalogic Solutions was shut down in November of the same year.
With SFIO having obtained statements from CMRL and KSIDC, and the High Court rejecting Veena’s petition, speculation now surrounds when SFIO will summon Veena for questioning.
Observers anticipate that Exalogic Solutions may appeal to the Supreme Court against the Karnataka High Court’s ruling. As the Lok Sabha elections draw near, the controversy is expected to become a prominent election issue. The allegation of a Rs 135 crore payment from CMRL to various political leaders has raised concerns among leaders of multiple parties, challenging the narrative that the Exalogic-CMRL issue is merely a political allegation without substance.
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