ED files money-laundering case against Kerala CM's daughter, her IT firm

ED files money-laundering case against Kerala CM’s daughter, her IT firm

Kochi, Mar 27 (PTI) The Enforcement Directorate (ED) has filed a money-laundering case to probe charges that a Kochi-based private firm made illegal payments to an IT company owned by Kerala Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan and some others, official sources said on Wednesday.

The federal agency has registered the case under the Prevention of Money Laundering Act (PMLA) and is expected to summon the alleged beneficiaries of these funds and others involved, the sources said.

The ED case has been booked after taking cognisance of a complaint filed by the Serious Fraud Investigation Office (SFIO), an investigative arm of the Union corporate affairs ministry, they added.

The case came to light after the income-tax department found that Cochin Minerals And Rutile Limited (CMRL) made an alleged illegal payment of Rs 1.72 crore to Veena Vijayan’s company — Exalogic Solutions — in 2018 and 2019, even though the information technology (IT) firm had not provided any service to the private company.

The Karnataka High Court last month dismissed a plea filed by Exalogic Solutions against the probe initiated by the SFIO.

According to reports quoting the Income Tax Interim Board for Settlement, the Kochi-based company previously had an agreement with Veena Vijayan’s firm for consultancy and software support services.

Despite the fact that no service was rendered by Veena Vijayan’s firm, the amount was paid on a monthly basis “due to her relationship with a prominent person”, the reports have claimed, citing the deposition of the minerals company authorities before the income-tax department.

However, the chief minister has rubbished the charges, saying they were made to tarnish his image and defame him.

The sources said the ED will probe all the alleged illegal payments made by the private company to “influential and politically-linked persons”.