Kerala State Industrial Development Corporation (KSIDC) engaged an outside lawyer for Veena Vijayan. The remuneration paid is Rs 82.5 lakhs, despite the KSIDC having its own permanent lawyer. The assignment given to the outside lawyer was to argue in the High Court that there was no need for a Serious Fraud Investigation Office (SFIO) enquiry in connection with the monthly payment Veena received from Cochin Minerals and Rutile Limited (CMRL).
This journal had reported in August 2023 the shocking allegation that Veena Vijayan, daughter of Pinarayi Vijayan, CPM supremo and Kerala Chief Minister, got the monthly payment for three years, 2017– 20, from Cochin Minerals and Rutile Limited, a black oil company near Kochi, for some services which she was supposed to provide; but 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 crore. The New Delhi Branch of the Board had reportedly stated that these payments were made thanks to their close association with a high-profile 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’s allegation was against the Chief Minister.
The court made it a point to mention that SFIO is going to inquire into not only the Rs 1.72 crore dealings between Exalogic Solutions and CMRL but also Rs 135 crore that CMRL is alleged to have gifted to various political leaders. There were reports that even the media sector had got a share.
KSIDC engaged senior lawyer Adv CS Vaidyanathan and paid Rs 82.50 lakhs for arguing for the cancellation of the SFIO enquiry. CS Vaidyanathan had represented Ram Lalla in the Ayodhya-Ram Janmabhoomi case before the Supreme Court. According to reports, KSIDC has its own permanent lawyer, P U Shailajan, who gets Rs 3.36 lakhs per annum for giving legal advice. CS Vaidyanathan was reportedly paid Rs 82.5 lakhs for three sittings on January 24, February 7 and 12, 2024. This information was reportedly collected by M K Haridas from Right To Information (RRI).
During 2022-23. KSIDC had reportedly parted with another Rs 4 lakhs for legal advice regarding the same issue. KSIDC owes the people of Kerala an explanation for this.
Kerala State Industrial Development Corporation is the premier agency of the Government of Kerala. It enjoys the mandate for industrial and investment promotion in Kerala. Formed in 1961, KSIDC’s primary objective was to promote, facilitate, and finance large—and medium-scale industries and catalyze the development of physical and social infrastructure required for industrial growth in the state. Apparently, KSIDC has 13.45 per cent shares in CMRL. A nominee of the director is on the company’s board.
The Kerala High Court had observed that the Kerala State Industrial Development Corporation holds 13.4 per cent shares in Cochin Minerals and Rutile Limited (CMRL) and has a nominee director on the company’s board. Therefore, obviously, the government of Kerala cannot absolve itself of this responsibility. But, CPM State Secretary M V Govindan does not give an authentic response to the question. He said questions regarding the legal expenses should be posed to KSDIC itself. The Union Ministry of Corporate Affairs has initiated an inquiry under Section 210 of The Companies Act, as the explanation given by KSIDC regarding the financial transactions between Exalogic and CMRL was found to be unsatisfactory.
The Government of Kerala struggles to pay its employees’ salaries and even pensions. The Police Force does not get funds to pay for the fuel expenses of department vehicles. The Government even complained to the Supreme Court against the Union Government for not granting loan facilities. But the Government provides handsome monies for Veena Vijayan’s case, which is, at the end of the day, a case of a personal nature.
