Kerala CM's daughter T Veena to be prosecuted in illegal payment case

Opposition Congress is planning a statewide protest, demanding the resignation of the chief minister

The Union Ministry of Corporate Affairs has granted permission to prosecute Kerala Chief Minister Pinarayi Vijayan’s daughter, T Veena, in a case involving an alleged illegal payment of ₹2.73 crore from Cochin Minerals and Rutile Limited (CMRL), according to a report by India Today.

 

After the news broke, the Opposition Congress said that the party would hold a statewide protest, demanding the resignation of the chief minister.

The clearance was granted after the Serious Fraud Investigation Office (SFIO) filed its charge sheet with the Special Court for Economic Offences in Kochi.

 

What is the case against T Veena?

 

 

Veena, who owns Exalogic Solutions, allegedly received an amount of ₹2.73 crore from CMRL without providing any IT service in return. According to the SFIO, a formal agreement was signed between Exalogic Solutions and CMRL and the payments were fraudulent and unjustified. 

 

The issue first came to public attention on August 8, 2023, when it was reported that Exalogic had received ₹1.72 crore from CMRL between 2017 and 2020 without providing any services. Following this, the central government asked the SFIO to look into the matter.

 

In its 160-page report, the SFIO named Veena, CMRL Managing Director Sasidharan Kartha, and 25 others as accused. It also listed several companies, including CMRL, Exalogic Solutions, and its subsidiary Empower India Capital Investments. The agency said that Veena had misused money from the subsidiary company.

 

Veena has been charged under Section 447 of the Companies Act, 2013, which deals with corporate fraud involving either at least ₹10 lakh or one per cent of a company’s turnover. If found guilty, the punishment could range from six months to ten years in prison, along with a fine of up to three times the amount of the fraud.

 

The SFIO found that Veena’s company had received a total of ₹2.70 crore from CMRL. Separately, in 2023, the Income Tax Interim Settlement Board confirmed that ₹1.72 crore was paid, based on statements from CMRL employees.

 

Congress and BJP demand CM’s resignation

 

According to a report by The New Indian Express, the Congress party has announced statewide protests across Kerala after reports said that the chief minister’s daughter has been named in the SFIO chargesheet.

 

Calling the development “serious”, Leader of Opposition V D Satheesan said the chargesheet proves the allegations against Veena. “Without rendering any service, Veena’s company received ₹2.7 crore because she is the daughter of the chief minister. The CM should own moral responsibility and resign immediately. As CM, how would he justify the prosecution steps against his daughter?” he asked.

 

Satheesan said that the chargesheet supports what the Opposition has been saying all along. He also called on the CPM’s central leadership to clarify its position.

 

Congress State President K Sudhakaran said there is “clear evidence” in the case. “The chief minister and his daughter will not be able to evade the evidence. This will shock every Left worker in the state,” he added.

Congress Working Committee Member Ramesh Chennithala alleged that the money paid to Veena’s company was actually meant for the CM. “The CM should resign immediately. Leaders attending the party congress in Madurai should find a replacement for Pinarayi,” he said.

 

KPCC general secretary M Liju said Congress will stage protests in all districts. As part of the agitation, all Assembly-level committees will burn effigies of the CM, Liju said.

 

The BJP also joined the protest with State BJP President Rajeev Chandrasekhar stating, “The BJP will stage protests at all district headquarters demanding his resignation.”