Saritha, who deposed before Justice Sivarajan Commission probing the solar panel scam, said she had a discussion with the Chief Minister regarding formation of the company to carry out renewable energy business.
"I was told to create a cooperative institution- Kerala Renewable Energy Cooperative Society Ltd- involving Chandy Oommen and some other family members. I was told to incorporate details about renewable energy resources in its bylaws," she told the Commission.
She alleged that Chandy Oommen was a partner of an American firm called Starflames Inc and it was suggested that the US-based company could be used for importing solar panel required for the institution to be formed in Kerala.
Saritha rejected allegations that she had "illicit relations" with Chandy Oommen but admitted that she had business relations with the Chief Minister's son.
"There are allegations about illicit relations with Chandy Oommen. Unfortunately, I am not the heroine of such stories....It was another accused in the solar case. I am not revealing the name as I don't have evidences to establish it and also it is a matter affecting their privacy," she said.
"I doubt Radhakrishnan had leaked information about the video clippings to media fearing a cabinet reshuffle," she said.
There was no immediate reaction from Chandy Oommen about Saritha's allegations.
Solar scam pertains to cheating of several persons worth crores of rupees by Saritha and her co-accused Biju Radhakrishnan by offering solar panel solutions. They allegedly canvassed business by using high-level names including that of Chandy.
While Saritha was granted bail after remaining behind bars for nearly nine months, Biju Radhakrishnan is still in jail.