New Delhi: In a startling revelation, it has come to light that Veena Vijayan, the daughter of Kerala CM Pinarayi Vijayan, and her company, Exalogic Solutions, have purportedly received substantial monthly payments amounting to ₹1.72 crores for services that were never rendered for the last three years. The New Delhi bench of the Income Tax Interim Settlement Board recently ruled that these payments were made due to their association with the high-profile individual.
The controversy dates back to January 25, 2019, when the Income Tax Department conducted a comprehensive investigation encompassing the offices and residences of key officials, including Veena Vijayan. This inquiry also extended to Cochin Minerals & Rutile Limited (CMRL), a private entity with which Veena and her company had entered into agreements.
The probe unearthed compelling evidence pointing to the improper disbursement of substantial sums to media organisations. Notably, a document detailing the agreements between Veena, Exalogic Solutions, and CMRL was discovered during an inspection of CMRL’s Chief Financial Officer, KS Suresh Kumar’s residence.
The investigation scrutinised tax payment records spanning from 2013–14 to 2019–20. It revealed a pattern of exaggerated expenses and substantial tax evasion on the part of CMRL. The Income Tax Department subsequently initiated action against CMRL and its key personnel, including the Managing Director, SN Sasidharan Kartha.
The Income Tax Interim Settlement Board, functioning under Section 245AA of the Income Tax Act, concluded its deliberations. The decisions of this board are final, leaving no room for appeals. The board’s role involves evaluating settlement applications from individuals or entities accused of tax evasion, as was the case here.
Veena and Exalogic Solutions had entered into agreements with CMRL in 2016 and 2017, respectively, to provide IT, marketing consultancy, and software services. However, subsequent investigations revealed that these services were allegedly never fulfilled. Although CMRL’s managing director initially claimed to have abided by the terms of the contract, his statement was challenged by the Income Tax Department.
A significant sum of ₹1.72 crores was allegedly transferred to Veena and Exalogic Solutions between 2017 and 2020, according to the Income Tax Department’s findings. The Settlement Board Bench determined based on compelling evidence, that these funds were disbursed for services that were not actually provided.
The CMRL officials, including Chief Financial Officer KS Suresh Kumar and Chief General Manager P Suresh Kumar, denied any awareness of receiving the contractual services. Notably, Sasidharan Kartha and other company representatives attempted to retract their initial statements through affidavits. However, the Income Tax Department remained steadfast in its stance that these payments were illegitimate.
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