There is still no answer to the question of what services Exalogic, the company of Chief Minister’s daughter Veena Vijayan provided to get paid by CMRL.
The Union Ministry of Corporate Affairs has ordered a detailed investigation into the irregularities connected to Veena Vijayan’s company, ‘Exalogic Solutions’ in connection with the ‘monthly payment’ from the black soil company Cochin Minerals and Rutile Limited (CMRL). A three-member team, including Karnataka Deputy Registrar of Companies Varun BS, Chennai Deputy Director K M Shanker Narayan, and Pondicherry Registrar of Companies A Gokulnath, will conduct the investigation. The inquiry panel has been asked to submit the report within four months.
With the investigation strengthening, more on the scam is surfacing. It is found that Veena Vijayan’s company, Exalogic, the Bengaluru-based firm is registered using the address of the CPI(M)’s party headquarters, AKG Centre. Earlier, even amid internal party inquiries, State Secretary MV Govindan had dismissed the need to verify the company’s address, stating that its records are not maintained at the AKG Centre.
Kerala State Industrial Development Corporation (KSIDC), a public sector undertaking, is also under scrutiny now. CMRL is a public-listed chemical company founded in 1989 with the assistance of KSIDC. Almost two weeks after the monthly payment controversy related to CMRL erupted, the KSIDC, which has a 13.41 per cent stake in CMRL, had sought a ‘clarification’ from the latter.
In its statement before the Income Tax Interim Board for Settlement, CMRL informed that they paid Rs 1.72 crore to Exalogic Solutions Pvt Ltd owned by Veena Vijayan, daughter of the Chief Minister, Pinarayi Vijayan. The CMRL had also informed that over the past five years, Rs 134. 27 crore was given as cash payments to politicians, bureaucrats, media and police personnel. KSIDC, which is a Kerala government organization, as a face-saving gesture, sought ‘clarification’ from CMRL.
The income tax department’s Interim Board for Settlement’s verdict that came out in 2023 stated that, Rs. 1.72 crore was paid by Cochin Minerals and Rutile Limited (CMRL) to M/S Exalogic Solutions Pvt limited, of which Veena T, daughter of the chief minister, is the sole director board member, for “service which has not been rendered or received”. The order said it is not clear what grounds and process CMRL applied for granting consultancy to Veena’s company. The payments were allegedly made between 2017 and 2020.
CMRL said, the company paid Rs. 1.72 crores to Exalogic for marketing and consultancy services, but the order of the Income Tax Interim Settlement Board states that no services were provided by Exalogic for the money paid to them by CMRL. The Income Tax Interim Settlement Board had in its investigation found that Veena was paid Rs 5 lakh and Exalogic Rs 3 lakh per month.
However, earlier, CM Pinarayi Vijayan and other senior leaders had come forward and stated that the funds discovered by the investigation team were in exchange for legitimate services from Veena Vijayan’s company ‘Exalogic Solutions.’ They argued that the agreement was legally made between the two companies. But neither Exalogic nor Veena has taken any legal action against the Interim Board’s findings in the case. Also, the latest reports issued by the Registrars of Companies at the Kochi and Bengaluru centers, refute all the claims of the CPI(M).
With the Union Ministry of Corporate Affairs ordering the investigation, CPI(M), CM Pinarayi Vijayan, Veena Vijayan and her company Exalogic are under pressure.
From the initial stage of the controversy, the BJP and the opposition had raised questions about the services provided by Exalogic. But till now neither the Chief Minister nor his daughter nor the CPI(M) have replied to this. The CPI(M) says that the ‘monthly payment’ controversy is politically motivated by Opposition leaders in Kerala.
The Union Ministry of Corporate Affairs’ decision to investigate Exalogic’s dealings was not discussed during the CPI(M) state committee meeting held yesterday. CPI(M) leaders, including Veena Vijayan’s husband and Public Works Department and Tourism Minister PA Mohammed Riyas, refrained from addressing the media. The CPI(M)’s official stance is that discussing the matter publicly is unnecessary, emphasizing the importance of the ongoing investigation.
Comments