THIRUVANANTHAPURAM/KOCHI: The Ministry of Corporate Affairs (MCA) has ordered a probe against Exalogic Solutions Pvt Ltd, an IT company owned by Chief Minister Pinarayi Vijayan’s daughter T Veena, in connection with the monthly payments it received from a firm allegedly without providing any services.
The Aluva-based Cochin Minerals and Rutiles Ltd (CMRL), which made the payments, and the Kerala State Industrial Development Corporation Ltd (KSIDC), which has a 13.4% stake in CMRL, will also come under investigation. According to the order issued by MCA joint director M D Shakeel on January 12, a three-member team comprising Karnataka Deputy Registrar Varun B S, Chennai Deputy Director K M Shanker Narayan and Pondicherry Registrar A Gokulnath will carry out the investigation. The team has been asked to submit its report to the Union government within four months.
In August 2023, the Income Tax Interim Settlement Board released a report saying that Veena and her company received Rs1.72 crore over the last three years as monthly payments from CMRL though there is no evidence of any services provided in return.
The MCA order pointed out that the Registrar of Companies, Bengaluru, had conducted a probe based on a complaint received regarding the payment allegations. “The inquiry conducted under the provisions of Section 206(4) of the Companies Act unearthed various violations and offences. The report also recommended an investigation into the affairs of the company,” the order said.
Order proves charges levelled by Cong are correct, says Satheesan
“Based on this report, the Registrar of Companies in Ernakulam, in its report submitted to the Central government, said the replies furnished by CMRL are vague and evasive to the allegations. KSIDC had not furnished a reply to the notices issued by the Registrar of Companies based on the complaints,” the MCA order said.
The order further said in the exercise of powers conferred under section 210(1) (c) of the Companies Act, 2013, the Central government has formed an opinion that the affairs of the CMRL, KSIDC and Exalogic Solutions are to be investigated.
Welcoming the probe, CMRL chief general manager N Ajith said the truth will come out as the findings of the committee will be final. “We are yet to receive any notice. The company had replied to the notice served by the ROC, Ernakulam,” he told TNIE.
Ajith also dismissed the allegations that payments were made to Exalogic Solutions without providing any services. “We gave payments to Exalogic Solutions, not to T Veena. There is proof for it in the form of TDS (tax deducted at source) from the Income Tax department and IGST,” he said. Refuting the allegations that CMRL gave donations to political leaders, Ajith said donations were given only to political parties.
Reacting to the development, Leader of Opposition V D Satheesan said the MCA probe order proves that the charges levelled by the Congress are correct. “The probe by ROC has found grave irregularities in Exalogic Solutions. Following this, the Ministry of Corporate Affairs has initiated an investigation against CM’s daughter’s company,” he told reporters in Kochi.
He, however, expressed doubt about the final outcome of the investigation by the central agencies. “We suspect the investigation by the central agencies will conclude just the way it did during the assembly elections. The ED investigation into the Karuvannur Cooperative bank scam is going slow as part of a settlement to ensure BJP’s victory in Thrissur,” Satheesan alleged.
CPM leaders responded cautiously to the development, with some evading questions while others said they need more time to study the matter. LDF convener E P Jayarajan, however, accused central agencies of targeting various opposition leaders for political gains. “The probe against the company of Pinarayi Vijayan’s daughter is politically motivated. The BJP is using all central agencies for its political interest. It has been going on in many states,” he said.
‘Truth will come out’
Welcoming the probe, CMRL chief general manager N Ajith said the truth will come out as the findings of the committee will be final. “We are yet to receive any notice. The company had replied to the notice served by the ROC, Ernakulam,” he told TNIE. Ajith also dismissed the allegations that payments were made to Exalogic Solutions without providing any services.
3-member team to probe