KANNUR: In a development that could have serious political fallout, the Income Tax (I-T) department on Thursday raided the Vaidekam Resort in Kannur in which CPM veteran E P Jayarajan’s immediate family members are shareholders.
The Tax Deducted at Source (TDS) wing of the IT department from Kochi conducted the inspection at the resort at Vellikkeel near Morazha. Jayarajan’s wife P K Indira is the chairperson of the company, and their son P K Jaison is a shareholder. The IT team was acting on a complaint of money laundering.
Jayarajan termed the inspection as “a routine procedure”. The IT team was carrying out checks regarding TDS, he said. Resort CEO Thomas Joseph said financial transactions of the company are being examined. Claiming that allegations regarding black money are false, Thomas said all transactions of the resort are done through banks.
The Vaidekam Resort drew public attention after P Jayarajan, another CPM leader from Kannur, raised the issue a couple of months ago at the party state committee meeting, levelling allegations of corruption and nepotism against E P Jayarajan, who is also the LDF convener.
E P Jayarajan acquired the property illegally and built the resort there, P Jayarajan had alleged. He had also claimed that some changes were made in the company, including in its director board, after he made the accusation earlier.
Meanwhile, a journalist has approached the Enforcement Directorate (ED) alleging money laundering activities in the resort project, and requesting a detailed probe by the national agency. Editor of Green Kerala News M K Ajayan claimed that funds were pumped into the project from abroad and unaccounted money worth around Rs 7.62 crore was laundered in the project. The complaint also includes the list of 20 people who invested in the project.