The allegations of prominent political leaders in Kerala to have received illegal payments, including Veena, the daughter of Kerala Chief Minister Pinarayi Vijayan, from Cochin Minerals and Rutile Limited (CMRL), will be part of the investigation by a three-member team appointed by the Union Ministry of Corporate Affairs (MCA) to delve into the operations of CMRL.
The investigative team, comprising Varun BS, Deputy Registrar of Companies, Bengaluru, KM Shanker Narayan, Deputy Director in the office of Chennai Regional Director, and A Gokulnath, ROC, Puducherry, will not only scrutinize CMRL but also Exalogic Solutions Pvt Ltd, a company owned by Veena, and Kerala State Industrial Development Corporation (KSIDC), holding a 13.4% stake in CMRL.
The Union Government's decision to launch the investigation follows an unsatisfactory response from CMRL and KSIDC to the ROC Ernakulam's initial inquiry based on a complaint. The government, invoking powers under section 210(1)(C) of the Companies Act, 2013, cited vague and evasive replies from CMRL and non-responsive behaviour from KSIDC as reasons for the intervention.
This move comes in the wake of an Income Tax Interim Settlement Board (ISB) report from August 2023, revealing startling revelations. Veena and her company allegedly received Rs 1.72 crore in monthly payments over the last three years from CMRL without providing any evidence of corresponding services.
The report further exposed documents seized during a 2019 raid on the CFO of CMRL, Suresh Kumar's residence, detailing payments to politicians, temples, government officials, and media houses. Some recipients were identified through abbreviations like "PV" (Pinarayi Vijayan), "KK" (IUML leader Kunhali Kutty), "IK" (Congress leader Ramesh Chennithala), and more.
The ISB accused CMRL of disbursing Rs 135 crore to political leaders and government officials post-2016. In response, the ROC issued a show cause notice in December 2023, demanding explanations from CMRL and KSIDC regarding fund transfers to politicians and others.