According to Right To Information (RTI) documents, controversial Cochin Minerals and Rutile Limited (CMRL) does not have permission to mine black soil. The reply has been made by the State Mining & Geological Department (SM&GD). It says three companies are having permits. They are Indian Rare Earth Ltd., Kerala Minerals & Metals Ltd. and Kerala Rare Earth & Minerals Ltd. It also says there are no unauthorised quarries in the state. The reply also says SM&GD does not impose any royalty. Royalty is imposed on ilmenite, rutile, zircon, sillimanite, leucosin and monazite. Now, the layman’s question of academic interest is, ‘how did CMRL manage to carry out mining?’. For the people of Kerala, it is a severe issue.
The RTI enquiry was filed by K.P. Chithrabhanu from Thiruvananthapuram. The RTI reply says there is no royalty for mining. This journal has been carrying several stories about CMRL since the last one year, and all were for bad reasons.
In August 2023 the shocking allegation that Veena Vijayan, daughter of Pinarayi Vijayan, CPM supremo and Kerala Chief Minister, received monthly payments for three years, 2017–2020, from Cochin Minerals and Rutile Limited (CMRL), a black oil company near Kochi, for services she was supposed to provide; however, no service was rendered.
According to the Income Tax Interim Settlement Board, under Section 245AA of the Income Tax Act, the payment was Rs 1.72 crore. The New Delhi Branch of the Board reportedly stated that these payments were made. The controversy started back on January 25, 2019. Since then, BJP, NDA, Opposition Congress, and Congress-led United Democratic Front (UDF) have been alleging that the Board’s allegation was against the CM.
Kerala State Industrial Development Corporation (KSIDC) engaged an outside lawyer for Veena Vijayan. The remuneration paid is Rs 82.5 lakhs. This is despite KSIDC having its own permanent lawyer, P.U. Shailajan, who reportedly gets Rs 3.36 lakhs per annum for giving legal advice. 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.
Kerala High 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 gotten a share.
Viadyanathan, an outside lawyer engaged by KSIDC, was reportedly paid Rs 82.5 lakhs for three sittings on January 24, February 7 and February 12, 2024. M.K. Haridas reportedly collected this information from Right To Information.
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.
KSIDC 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 catalyse 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 board of the company. Therefore, obviously, the Government of Kerala cannot absolve itself of this responsibility. But, CPM state leadership brushes aside the questions in this regard. They maintain that 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 funds for Veena Vijayan’s case, which, at the end of the day, is a personal case.
