The Serious Fraud Investigation Office (SFIO) has issued a charge sheet naming Veena Vijayan — daughter of Kerala Chief Minister and CPM supremo Pinarayi Vijayan, and wife of CPM minister Mohammed Riaz — as an accused.
Titanium company Cochin Minerals and Rutile Limited (CMRL), its sister concern Empower India, and Veena Vijayan’s Exalogic Consulting are also among the accused. The Ministry of Corporate Affairs has granted permission to the SFIO to proceed with prosecution formalities.
According to SFIO findings, Veena Vijayan’s Exalogic Consulting allegedly received ₹2.70 crore from CMRL and Empower India without rendering any service whatsoever.
The Kerala High Court had orally observed, back in March 2024, that the Kerala State Industrial Development Corporation (KSIDC) — which holds a 13.4% stake in CMRL and has a nominee director on its board — ought to have sought an investigation the moment allegations of an illegal financial transaction between CMRL and Exalogic Solutions Private Limited (an IT firm owned by T. Veena, daughter of CM Pinarayi Vijayan) had surfaced.
Now, the Ministry has approved prosecution against Veena Vijayan, CMRL’s Managing Director Sasidharan Kartha, and CMRL’s CGM (Finance), P. Sureshkumar. Veena, Kartha, Exalogic, and CMRL have been charge-sheeted under Section 47 of the Companies Act.
Veena and her company Exalogic are alleged to have received ₹2.70 crore from CMRL and Empower India in a clearly illicit manner, without providing any services. Notably, Sasidharan Kartha and his wife are the directors of Empower India. These damning allegations have been circulating in the media for the past couple of years, reportedly leaked by a senior functionary within the firm.
Now that the Ministry’s sanction has been granted, the court in Kochi can proceed with hearings. Veena and the other accused will be formally served with summons.
It has been uncovered that a massive ₹185 crore fraud was engineered through the dealings between CMRL and Exalogic. The Union Government had explicitly stated before the Delhi High Court that this fraud had been confirmed by the SFIO investigation. Furthermore, the Income Tax Department also informed the court that such a fraud had indeed taken place.
Meanwhile, the Delhi High Court has rejected a petition to halt legal proceedings against Veena and CMRL, clearing the path for the law to take its course.
Tracing back the origins of this financial scandal, it was the Registrar of Companies (RoC) that first brought it to light. This crucial finding formed the basis of the RoC’s response to a petition by CMRL in the Delhi High Court seeking to halt the inquiry. The RoC report, covering accounts from 2012 to 2019, asserts that it possesses substantial evidence to support its claims. The RoC has alleged that CMRL exaggerated its expenses through fabricated transactions.
In a telling development, KSIDC — the state’s premier agency for industrial promotion — had moved the Kerala High Court to challenge the SFIO’s inquiry into its role in the dubious dealings between CMRL and Exalogic.
KSIDC, established in 1961, holds 13.45% shares in CMRL and was created to promote and finance large and medium-scale industries and drive industrial growth in Kerala. Ironically, the same agency now finds itself defending its role in a financial web woven by those at the highest levels of state power. This alone justifies the SFIO’s probe into their involvement.
Notably, the Kerala High Court has remarked that the SFIO will not only investigate the ₹1.70 crore dealings between Exalogic Solutions and CMRL, but also the staggering ₹135 crore that CMRL is alleged to have gifted to various political leaders. Reports even suggest that certain players in the media sector may have had a taste of this financial pie.
