News Brief
ED Probes Suspected Transactions Involving IT Firm Of Kerala Chief Minister Pinarayi Vijayan's Daughter: Here's All About It
Kerala Chief Minister Pinarayi Vijayan.
In a recent development, the Enforcement Directorate (ED) has initiated an investigation into suspected transactions between Kerala Chief Minister Pinarayi Vijayan's daughter T Veena's IT firm, Exalogic Solutions, and Kochi-based Cochin Minerals and Rutile Limited (CMRL).
As reported by TNIE, the ED's Kochi unit has filed an Enforcement Case Information Report (ECIR) — akin to a first information report (FIR) in criminal cases — and commenced a thorough probe into these transactions.
The ED's action follows revelations from an income tax probe indicating that CMRL purportedly disbursed Rs 1.72 crore to Exalogic Solutions under the guise of software service provision.
Also, the Serious Frauds Investigation Office (SFIO) is simultaneously conducting an inquiry into CMRL concerning the alleged disbursement of Rs 95 crore to various individuals, including political figures and trade unions.
While ED officials confirmed a preliminary probe into CMRL, they have refrained from disclosing specific details regarding the ECIR registered against CMRL.
Under the Prevention of Money Laundering Act (PMLA), the ED typically registers ECIRs based on predicate cases investigated by other agencies.
The report disclosed alleged tax evasion by CMRL through inflated expenses.
In November 2020, CMRL sought a settlement with the Income Tax Interim Settlement Board concerning these allegations.
Further revelations indicate that CMRL entered into agreements with Veena for marketing consultancy services in 2016, with Veena receiving Rs 5 lakh monthly for the service.
Another agreement was struck between CMRL and Exalogic in 2017 for software support, with Exalogic purportedly entitled to Rs 3 lakh monthly.
However, statements from senior CMRL officials during the income tax probe contradicted claims of receiving any services from Veena or Exalogic.
