Following the Centre's directive to investigate complaints of violations by an IT firm owned by Kerala Chief Minister Pinarayi Vijayan's daughter, Veena, the government in Kerala faces increasing scrutiny. The Ministry of Corporate Affairs has initiated an inquiry into financial transactions between a Kochi-based private minerals company and Veena Vijayan's IT firm.
Criticism is mounting against the ruling CPI(M) in Kerala, with the Opposition demanding a response regarding the alleged financial fraud in transactions. Union Minister V Muraleedharan welcomed the Centre's probe, expressing optimism that it would uncover CPI(M) Kerala's "commission raj." He asserted that the investigation would reveal individuals facilitating the Chief Minister's daughter to receive a monthly commission without her company rendering any services.
The controversy stems from reports indicating that Cochin Minerals and Rutile Ltd paid Rs 1.72 crore to Veena Vijayan's firm between 2017 and 2020. According to an Interim Board for Settlement ruling, the company had an agreement with Veena's IT firm for consultancy and software support services. Despite no services being provided, the monthly payments were made due to her relationship with a prominent person, as per the minerals company authorities' deposition before the Income Tax Department.
In December, the Kerala High Court issued a notice to Veena Vijayan and ten others in connection with alleged financial transactions. Chief Minister Pinarayi Vijayan dismissed the charges, claiming they were intended to tarnish his image.
Congress MLA Mathew Kuzhalnadan, who had filed a complaint in October, demanded an explanation from the CPI(M) leadership and the state Industries Department. He referred to a previous press statement from the CPI(M) state secretariat that defended Veena, asserting that there was transparency in the dealings between the two companies. Kuzhalnadan questioned the CPI(M)'s response to the current context and sought clarification from Public Works Department Minister PA Mohammed Riyas, who is Veena's husband, on whether the Centre's probe is seen as a routine procedure.
The Congress legislator highlighted that the Centre sought replies not only from Veena's IT firm but also from the Kochi-based minerals company and the state-run Kerala State Industrial Development Corporation Limited (KSIDCL). He emphasized the need for State Industries Minister P Rajeev to explain the circumstances under which KSIDCL was served notice by the Centre in connection to the issue.
