Centre approves prosecution of Kerala Chief Minister’s daughter in corruption case
In a significant blow to the Left Democratic Front (LDF) government in Kerala, the Union Ministry of Corporate Affairs has approved prosecution proceedings against Chief Minister Pinarayi Vijayan’s daughter, T Veena, in a case involving alleged illegal payments from Cochin Minerals and Rutile Limited (CMRL).
The clearance came after the Serious Fraud Investigation Office (SFIO) submitted its charge sheet before the Special Court for Economic Offences in Kochi.
In a significant blow to the Left Democratic Front (LDF) government in Kerala, the Union Ministry of Corporate Affairs has approved prosecution proceedings against Chief Minister Pinarayi Vijayan’s daughter, T Veena, in a case involving alleged illegal payments from Cochin Minerals and Rutile Limited (CMRL).
The clearance came after the Serious Fraud Investigation Office (SFIO) submitted its charge sheet before the Special Court for Economic Offences in Kochi.
The issue first came to light on August 8, 2023, when it was reported that Exalogic had received Rs 1.72 crore from CMRL between 2017 and 2020 despite rendering no services. In response to the report, the central government directed SFIO to conduct a detailed investigation.
In its 160-page prosecution complaint, the SFIO named Veena, CMRL Managing Director Sasidharan Kartha, and 25 others as accused. Several companies, including CMRL, Exalogic Solutions, and its subsidiary Empower India Capital Investments, were also listed. The agency concluded that Veena had misused funds from the subsidiary firm.
Veena faces charges under Section 447 of the Companies Act, 2013, which deals with corporate fraud involving either at least Rs 10 lakh or one per cent of a company’s turnover. If found guilty, the accused could face imprisonment from six months to ten years, along with a fine triple the defrauded amount.
The SFIO discovered that Veena’s company had received Rs 2.70 crore in total from CMRL. Separately, the Income Tax Interim Settlement Board reported in 2023 that Rs 1.72 crore had been paid, based on depositions from CMRL staff.
Opposition Leader VD Satheesan reacted strongly to the developments, stating, “The Serious Fraud Investigation Office’s inclusion of the Chief Minister’s daughter Veena Vijayan as an accused in the case is an extremely serious matter. The Serious Fraud Investigation Office charge sheet confirms the allegation that she received remuneration without providing any service. The Chief Minister’s daughter committed an offence punishable by up to ten years in prison.”
He further said, “Veena Vijayan’s company received 2.7 crore rupees only as the Chief Minister’s daughter without providing any service. In this situation, the Chief Minister should take moral responsibility for the corruption and resign. It is not appropriate for Pinarayi Vijayan to continue as the Chief Minister even for a moment. How can he justify his daughter facing prosecution while sitting in the Chief Minister’s position?”
“All the allegations made by the opposition regarding the monthly allowance have been proven to be true. What more do those who have defended the Chief Minister for so long have to say? The Communist Party of India (Marxist) central leadership should also clarify its position on such a serious issue,” Satheesan asserted.
