Thiruvananthapuram: CPI(M) State Secretary, MV Govindan, has come out to defend the Chief Minister’s daughter, Veena Vijayan, who is neck deep in the monthly payment controversy.
According to the party secretary, Veena Vijayan took the money as per a contract between two companies. The financial transactions were were legal as it was based upon the conditions outlined in the contract between the two companies.
MV Govindan also accused the media for blowing it out of proportion and turning it into a controversy.
The Income Tax (IT) Department had earlier found out that Veena Vijayan had received a total of Rs.1.72 crores in monthly payments from Cochin Minerals and Rutile Limited (CMRL) for three years. The contract was between CMRL and Veena Vijayan’s company, Exalogic Solutions.
The Income Tax Interim Settlement Board had said that Veena Vijayan was paid the amount because of the relationship with a prominent person.
Veena Vijayan’s firm, Exalogic Solutions made a contract with CMRL in 2016, according to which Exalogic will provide IT, marketing, consultancy services to CMRL. Another contract was signed in 2017 between the two companies, in which Exalogic agreed to provide software services.
For three year, CMRL paid Veena Vijayan and Exalogic Rs.1.72 crores. This includes the Rs.55 lakhs given to Veena Vijayan alone.
However, when questioned about the services rendered by Veena Vijayan and her firm, the Chief Financial Officer of CMRL said that he was not aware about any services she or Exalogic Solutions had given to CMRL in exchange for the monthly payment.
CMRL later tried to withdraw the Chief Financial Officer’s statement through an affidavit.
According to the laws of the IT Department it is legal to give payments for business expenses. However, the bench accepted the argument of the IT department that the payment to Veena Vijayan and her firm was illegal.
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