Kerala HC orders two months status quo in financial dealings scandal involving CM Pinarayi Vijayan’s daughter Veena

Kerala HC orders two months status quo in financial dealings scandal involving CM Pinarayi Vijayan’s daughter Veena

The Kerala High Court on Wednesday ordered that status quo be maintained for two months over a court in Ernakulam taking cognizance of the final prosecution complaint filed by the Serious Fraud Investigation Office (SFIO) in the alleged illegal payment scandal involving Veena T, the daughter of Kerala chief minister Pinarayi Vijayan, and Cochin Minerals and Rutile Limited (CMRL), a minerals manufacturer. The court has scheduled the next hearing for May 27.

A division bench comprising Justices Amit Rawal and P M Manoj directed the central government to submit in a sealed cover the names mentioned in the Income Tax Department's interim settlement board order concerning the CMRL transactions.

The PIL was filed by senior journalist M R Ajayan, who has also called for an investigation into the alleged political links between the companies and CM Vijayan. Ajayan based his plea on findings by the interim settlement board, which held that the Rs 1.7 crore paid to Veena between 2017-18 and 2019-20 could not be classified as legitimate business expenditure.

Additional Solicitor General ARL Sundaresan informed the court that the Serious Fraud Investigation Office (SFIO) had completed its probe and submitted the report to a special court, which has already taken cognisance of the offence. The division bench noted that a single bench had earlier passed an interim order maintaining status quo in a related matter.

What is the issue?

The controversy originates from a 2023 Income Tax Department report stating that CMRL transferred Rs 1.72 crore to Exalogic between 2018 and 2021 without receiving any services in return. The SFIO’s investigation reportedly revealed that Veena received a total of Rs 2.70 crore and found a Rs 182 crore financial fraud involving fake invoices and inflated expenses at CMRL.

Following a complaint filed by Shone George, a Kottayam district panchayat member and son of senior politician P C George, the ED launched a probe in March 2024. The Union Ministry of Corporate Affairs has since approved prosecution of Veena under the Companies Act.

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Veena, a former Oracle employee, has remained a prominent figure in Kerala’s public sphere. She became CEO of RP Techsoft International in 2012 before founding Exalogic in 2014. Her career and educational background have drawn scrutiny from political opponents, particularly in light of the CPI(M)'s critical stance on private education and the corporate IT sector.