SFIO Initiates Probe into Financial Irregularities By Firm Owned by Kerala CM's Daughter

The SFIO team has visited the office of Kerala CM's daughter and CMRL to collect relevant documents. It has been alleged that the company signed an agreement with CMRL to provide consultancy but received funds without rendering any services.

Thiruvananthapuram:The Serious Fraud Investigation Office (SFIO) has initiated an investigation into alleged financial irregularities by a firm owned by Kerala Chief Minister Pinarayi Vijayan's daughter Veena T.

The company named Exalogic allegedly received Rs 1.72 crore from Cochin Minerals and Rutile Limited (CMRL), in which Kerala State Industrial Development Corporation (KSIDC) holds stake. A five-member team from SFIO reached CMRL's Kochi Office this morning to collect relevant documents.

Earlier in 2019, the Income Tax Department inspected the CMRL office and had seized many documents. A diary containing information about financial transactions conducted by the company was also seized by the investigators. Names of political leaders to whom the company had given money were also revealed. Now, the SFIO officials are investigating for more information.

Last month, the Ministry of Corporate Affairs had handed over the case against Exalogic to the SFIO and asked to complete investigations within eight months. The SFIO will investigate KSIDC's role and the amount allegedly received from CMRL.

Exalogic had tied an agreement with CMRL for marketing consultancy services but the latter has been accused of paying Rs 1.72 crore to the company although it did not receive the requisite consultation. It was alleged that CMRL paid Rs 5 lakh to Vijayan's daughter and Rs 3 lakh to Exalogic every month. The amounts were transferred directly to their bank accounts.

Deputy director M Arun Prasad is leading the SFIO investigations. The financial irregularity was first pointed out by the New Delhi bench of Income Tax interim settlement board and a preliminary enquiry was conducted by Bengaluru's Registrar Of Companies (ROC). Its report stated that Exalogic failed in producing documents to prove that it received money for rendering consultancy services to CMRL. After which, a 3-member team was constituted to conduct detailed investigations.

ROC had also recommended for detailed investigation by ED and CBI under the Prevention of Money Laundering Act. The CPI-M and the CM are trying to put up strong defence stating that the investigations are part of BJP's agenda to malign non-BJP Chief Ministers and opposition leaders. Last week, Vijayan claimed her daughter started the business using his wife's pension funds.

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