ED files money-laundering case against Kerala CM Pinarayi Vijayan’s daughter Veena, her IT firm

Kochi, March 27

The Enforcement Directorate (ED) has filed a money-laundering case to probe charges that a Kochi-based private firm made illegal payments to an IT company owned by Kerala Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan and some others, official sources said on Wednesday.

The federal agency has registered the case under the Prevention of Money Laundering Act (PMLA) and is expected to summon the alleged beneficiaries of these funds and others involved, the sources said.

The ED case has been booked after taking cognisance of a complaint filed by the Serious Fraud Investigation Office (SFIO), an investigative arm of the Union Corporate Affairs Ministry, they added.

The case came to light after the income-tax department found that Cochin Minerals And Rutile Limited (CMRL) made an alleged illegal payment of Rs 1.72 crore to Veena Vijayan’s company—Exalogic Solutions—in 2018 and 2019, even though the information technology (IT) firm had not provided any service to the private company.

The Karnataka High Court last month dismissed a plea filed by Exalogic Solutions against the probe initiated by the SFIO.

According to reports quoting the Income Tax Interim Board for Settlement, the Kochi-based company previously had an agreement with Veena Vijayan’s firm for consultancy and software support services.

Despite the fact that no service was rendered by Veena Vijayan’s firm, the amount was paid on a monthly basis “due to her relationship with a prominent person”, the reports have claimed, citing the deposition of the minerals company authorities before the income-tax department.

However, the chief minister has rubbished the charges, saying they were made to tarnish his image and defame him.

The sources said the ED will probe all the alleged illegal payments made by the private company to “influential and politically-linked persons”.

CPI (M) criticises ED move; Congress terms it ‘election stunt’

Thiruvananthapuram: The ED move triggered a sharp reaction from CPI (M) in Kerala on Wednesday as it accused the Central agency of doing “daily labour” for the ruling BJP at the Centre.

The opposition Congress, which has been alleging a secret pact between the saffron party and CPI(M) in the state, however, reacted cautiously and raised suspicions that it was an “election stunt” ahead of the Lok Sabha polls, while BJP justified the move, saying corrupt people should have to face the consequences too.

Strongly criticising the ED move, CPI(M) state secretary M V Govindan asked whether the agency had any credibility.

The ED was one of the prominent agencies in the country, which the Supreme Court had said had lost its credibility, he said at a press conference here.

“It (the case) will be dealt with in an appropriate way,” he said, reacting to a query about the Enforcement Directorate filing a money-laundering case against Vijayan’s daughter Veena, her IT company and others to probe alleged illegal payments made by a private mineral firm to her and the company.

Replying to a question as to whether the CM was being targeted through the Central probe, the Left veteran asked whom they could not target.

“You can target anyone politically. But the question is, who is targeting. It (ED) is doing the daily labour for the BJP,” Govindan said.

Meanwhile, Satheesan described the ED case against the CM’s daughter as just an “election stunt” ahead of the Lok Sabha polls.

He said the case was just to prove that there was no connection between the Left and the BJP.

Though an investigation has been going on in the matter for some time, even a notice has not been served to the CM or his daughter so far, he told reporters in Palakkad.

Similar investigations had been launched into the Life Mission and Karuvannur Cooperative bank scams in the state earlier, but they have reached nowhere, he said, adding the ED does not have the same enthusiasm it shows in other states when it comes to Kerala.

The LoP also alleged that all these investigations would be settled between the CPI(M) and the BJP through middlemen.

However, the BJP state leadership reacted by saying that those who indulged in corruption should have to face its consequences too.

Responding to questions from mediapersons about the ED case, Union Minister V Muraleedharan said that under the rule of Prime Minister Narendra Modi, corrupt people have to answer for their deeds.

He said the CPI(M)’s argument that their leaders were being hunted down by Modi would not stand anymore.