The Enforcement Directorate (ED) has taken significant steps in the ongoing investigation into the ‘monthly payment’ case, allegedly involving Veena Vijayan, the daughter of Pinarayi Vijayan, the Chief Minister of Kerala and the supremo of the Communist Party of India (Marxist). ED has registered an Enforcement Case Information Report (ECIR), equivalent to a First Information Report (FIR) in police terms, under the Prevention of Money Laundering Act.
The decision to register the ECIR follows a preliminary inquiry conducted by the ED, during which details from Income Tax (IT) investigations were collected. The move comes amid ongoing litigation processes, with Shon George, a Bharatiya Janata Party (BJP) leader and petitioner, having sought an investigation by either ED or the Central Bureau of Investigation (CBI) through a petition filed before the Kerala High Court.
According to reports, notices will be served to the accused individuals promptly. Veena Vijayan’s company, Exalogic Solutions, is already under scrutiny by the Serious Fraud Investigation Office (SFIO), a premier investigative agency under the Ministry of Corporate Affairs. Other individuals implicated in the case are also subject to SFIO investigation, along with the ongoing probe by the ED.
Furthermore, preliminary enquiries are underway against Cochi Minerals and Rutile Limited, as well as the Kerala State Industrial Development Corporation Ltd. (KSIDC), a key agency of the Kerala government. Notably, KSIDC holds a significant stake of 13.4 per cent in CMRL.
Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan, finds herself embroiled in a controversy surrounding alleged improper payments amounting to Rs 1.72 crore over a three-year period from 2017 to 2020. The scandal came to light following a report by the Income Tax Interim Settlement Board, functioning under Section 245AA of the Income Tax Act, which uncovered irregularities in payments made to Veena Vijayan for purported services that were never rendered.
The issue gained traction in August 2023 when reports surfaced indicating that Veena Vijayan had received monthly payments from an undisclosed source, purportedly due to her close association with a high-profile VIP. While the identity of the VIP remains undisclosed, both the BJP and Congress have alleged that Chief Minister Pinarayi Vijayan may be the individual in question, a claim vehemently denied by the CM and his party leaders.
The investigation, which commenced in January 2019, initially targeted several prominent individuals, including Veena Vijayan, with subsequent scrutiny extending to Cochin Minerals & Rutile Limited (CMRL), a private company with which Veena had contractual agreements. During the probe, concrete evidence surfaced indicating improper payments to media houses, trade union leaders, and political VIPs.
Further revelations emerged when investigators discovered documents outlining agreements between Veena Vijayan and her IT firm, Exalogic Solutions, during searches at the residence of KS Sureshkumar, the Chief Financial Officer of CMRL. The investigation scrutinised tax payment records from 2013 to 2020, revealing a pattern of exaggerated expenses.
It was revealed that Veena and Exalogic Solutions had entered agreements with CMRL in 2016 and 2017, respectively, to provide IT, marketing consultancy, and software services. However, subsequent investigations found that these services were never fulfilled, prompting allegations of misappropriation of funds. The ITISB’s Bench concluded that the funds disbursed to Veena and Exalogic Solutions were for services that were never provided.
Meanwhile, officials from Cochin Minerals & Rutile Limited (CMRL) have stated that they have no record of receiving any services from the accused parties. CMRL’s Chief Financial Officer K.S. Sureshkumar and Chief General Manager P. Sureshkumar are among those who made this assertion.
The revelation comes amidst mounting scrutiny over the involvement of Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan, in the controversy. While the Communist Party of India (Marxist) or CPM has consistently defended Veena, critics have pointed out a perceived double standard in the party’s response, particularly in light of its handling of similar situations involving other members.
Notably, the CPM’s support for Veena contrasts sharply with its response to the arrest of the son of Kodiyeri Balakrishnan, the late state secretary of the CPM, in connection with a drug case. In that instance, the party permitted him to take leave from party positions without extending full support to his family.
Criticism of the CPM’s stance has intensified further as leftist debaters argue that the alleged sum of Rs 1.72 crore involved in Veena’s case is insignificant. Meanwhile, BJP leaders have seized upon the controversy, suggesting that the Veena-CMRL case may only be the tip of the iceberg, with potential money laundering schemes involving similar shell companies possibly amounting to thousands of crores of rupees.
