Expected to summon the individuals involved
BBN Bureau
Thiruvananthapuram: The Enforcement Directorate (ED) has initiated a money laundering case against Kerala Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan, her IT company, and others, to investigate alleged illegal payments made by a Kochi-based mineral firm to her and the company, official sources revealed on Wednesday.
Under the Prevention of Money Laundering Act (PMLA), the agency has registered a case and is expected to summon the individuals involved, according to the sources. The ED’s action follows a complaint filed by the Serious Fraud Investigation Office (SFIO), a Union Corporate Affairs Ministry investigative arm.
The case originated from an Income Tax Department investigation, which claimed that Cochin Minerals And Rutile Ltd (CMRL), a private company, made an illegal payment of Rs 1.72 crore to Veena’s company, Exalogic Solutions, between 2018 and 2019. Despite no services rendered by Veena Vijayan’s firm, the payments were allegedly made on a monthly basis due to her relationship with a prominent person, as per reports citing the deposition of minerals company authorities before the income-tax department.
The Karnataka High Court recently dismissed a plea filed by Exalogic Solutions against the SFIO’s probe. Chief Minister Vijayan has dismissed the charges, attributing them to an attempt to tarnish his image.
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”.
CPM slams Enforcement Directorate’s decision
Meanwhile, the ruling CPI(M) in Kerala has slammed the Enforcement Directorate’s decision to file a money-laundering case against state Chief Minister Pinarayi Vijayan’s daughter and her IT firm, alleging the Central agency was acting like a “daily labourer” for the BJP.
Strongly criticising the ED, 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 while addressing 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 Vijayan, 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 the daily labourer for the BJP,” Govindan said.
Dragging opposition leader V D Satheesan into the matter, he further said the present probe was also to calm down the Congress leader, who had lamented why the Central agency was not initiating any investigation against the government and leaders of Kerala.
Further, he alleged earlier Central agencies were used for political gains only, but now they are also used by the Union government and the BJP for amassing money from black money holders and offenders by threatening them.
“The party (the CPI-M) and its people are not the ones who surrender to such tactics and cases,” Govindan added.
Official sources said on Wednesday the agency has registered a case under the Prevention of Money Laundering Act (PMLA) against Veena and others and is expected to summon those involved.
The ED case has been booked after taking cognizance of a complaint filed by the Serious Fraud Investigation Office (SFIO), an investigative arm of the Union Corporate Affairs Ministry, they said.
The case stems from an Income Tax Department investigation that alleged that a private company called Cochin Minerals and Rutile Ltd (CMRL), made an illegal payment of Rs 1.72 crore to Veena’s company– Exalogic Solutions– during 2018 to 2019, even though the IT firm had not provided any services to the company.
