The Ministry of Corporate Affairs has ordered a probe against a firm, Exalogic Solutions, owned by Kerala Chief Minister Pinarayi Vijayan’s daughter Veena T for allegedly receiving payment from Cochin Minerals and Rutile Ltd (CMRL) without providing any service.

A three-member panel comprising Karnataka deputy registrar of companies Varun BS, Chennai deputy director KM Sanker Narayan, and Pondicherry registrar of companies A Gokulnath will conduct the probe. The inquiry panel has been asked to submit the report within four months.

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The Ministry of Corporate Affairs issued the investigation order based on the findings of the Income Tax Interim Settlement Board (ITISB) regarding the payments made to Kerala CM’s daughter Veena T by the CMRL.

During the preliminary investigation conducted by the registrar of companies, Bengaluru, it came to light that the company owned by the CM’s daughter had violated the law multiple times.

The probe panel will also investigate the financial transactions between the Kerala State Industrial Development Corporation (KSIDC) and the CMRL.

Earlier, the Corporate Affairs Ministry had issued show-cause notices to both the CMRL and the KSIDC after the ITISB established that the CMRL had made illegal payments amounting to Rs 133 crore to trade union leaders, political leaders, and officials. While the CMRL reportedly gave a vague and evasive reply to the notice, the KSIDC did not even respond to it, as per the available information.

In June last year, the New Delhi bench of the ITISB  discovered that the firm owned by CM Vijayan’s daughter Veena T had received Rs 1.72 crore from the CMRL for consultancy services that were never provided.

In December 2023, the Kerala High Court took suo motu cognisance and issued notices to Kerala Chief Minister Pinarayi Vijayan, his daughter Veena, UDF leaders, including Ramesh Chennithala, PK Kunhalikutty, VK Ibrahim Kunju, and others, in response to a petition challenging the Muvattupuzha Vigilance court’s order that dismissed a plea seeking an investigation into the alleged illegal payments made by the CMRL to political leaders.

Meanwhile, Opposition leader VD Satheesan raised suspicion over the central government’s investigation into the company owned by Chief Minister Vijayan’s daughter. Speaking to the media in Kochi on Saturday, Satheesan doubted the probe reaching a logical conclusion. He suggested the possibility of the investigation ending up entangled in a BJP-CPI-M nexus like the other four previous cases – the diplomatic gold smuggling case, SNC Lavlin case, Life Mission scam and Karuvannur bank scam.

“We are wondering whether the fifth case too will end up similarly,” the senior Congress leader said.

The CPI-M has not responded to the Centre’s order to set up a panel to conduct a probe against the company owned by CM Vijayan’s daughter. LDF convenor EP Jayarajan told media persons here that the central government’s decision didn’t come to his notice. State tourism and PWD minister Mohammed Riyas, Veena’s husband, refused to comment on the development. Riyas evaded media queries in this regard.

Meanwhile, the CPI-M said that this was a political vendetta on the part of the central government.