Central probe against Kerala CM's daughter's IT firm brings worries to CPI(M) ahead of LS polls

A Central probe ordered against an IT company owned by Kerala Chief Minister Pinarayi Vijayan's daughter T Veena has put the ruling CPI(M) in a fix in the state as the party is gearing up for the campaign ahead of Lok Sabha polls.

The Ministry of Corporate Affairs had ordered an investigation into the complaints about financial transactions between a private minerals company and Veena's IT firm, which had triggered a huge political controversy in the southern state recently.

Officials confirmed that a joint director at the Office of the Director General of Corporate Affairs had ordered the probe. The office comes under the Ministry of Corporate Affairs.

The Joint Director Md Shakeel did not respond to messages and calls.

As the news came out on Saturday, the opposition Congress immediately reacted, seeking an explanation from the state leadership of the Marxist party on the matter.

However, the CPI (M) state secretariat, which had issued a press statement months ago defending the financial transactions between the minerals company and Veena's IT firm, is yet to react to the Centre's probe.

While LDF convenor E P Jayarajan said he was unaware of the development, ministers P Rajeev and P A Mohammed Riyas did not give a clear reply while reporters sought their reaction.

''There is nothing new in these allegations. Everything had been raised before. Let's see what will happen,'' PWD Minister and Veena's husband Riyas told reporters here.

When his reaction was sought, Jayarajan said the Centre was using their agencies for political gains and interest.

''The union government is using their agencies for their political gains and interest. There are several examples in this regard before us,'' he told the media.

The development comes at a time when the Left party is planning several campaign programmes for the upcoming Lok Sabha polls.

Congress MLA Mathew Kuzhalnadan, who has been raising charges against CM Vijayan and his daughter on the issue for some time, said it was the CPI (M) state secretariat which had issued a press statement defending Veena earlier when he had raised the allegations against her IT company.

''In the press statement, they officially defended Veena saying it was a transparent dealing between two companies and there was nothing dubious in their transactions. So, I would like to know the reaction of the CPI(M) state secretariat on the matter in the present context,'' Kuzhalnadan said.

The Congress legislator also sought to know whether Riyas viewed the Centre's probe as a natural procedure.

He said as per his knowledge, besides Veena's IT firm, a reply was sought by the Centre from the Kochi-based private minerals company and the state-run Kerala State Industrial Development Corporation Limited (KSIDCL) also.

''By examining things so far, what I have understood is that a notice was served to all these three under Section 206 of the Companies Act, 2013. The present probe is ordered as the replies furnished by them were not satisfactory,'' the Congress leader said.

He further said state Industries Minister P Rajeev has the moral responsibility to explain to the public, under what circumstance the state-run KSIDC under his department was served notice by the Centre in the issue.

Meanwhile, addressing a press conference in Kochi, Opposition Leader V D Satheesan said the Registrar of Companies had found serious irregularities in the chief minister's daughter's company.

With the Centre ordering an investigation against the IT firm, all the points raised by the opposition in this regard have turned out to be correct, he claimed.

''Has the CPI(M) ever discussed when such a serious allegation has cropped up against the CM and his family?'' the LoP asked.

None of the party leaders are responding to the investigation ordered by the Centre into the allegations against Vijayan's daughter's company, Satheesan said.

It is the beginning of the degradation of the Marxist party in the state, he further alleged.

Expressing concern about the future progress of the Central probe, the LoP also said he was not sure what would happen at the end of the investigation.

He indicated that the BJP and the CPI(M) might arrive at an agreement in this case also like they allegedly did in many similar cases before.

A controversy erupted in Kerala recently over some financial transactions between the Kochi-based private minerals company and CM Vijayan's daughter Veena and her IT firm.

Evidence also cropped up that purportedly showed the company had dealings with top leaders of both the ruling CPI(M) as well as the opposition Congress-led UDF.

The issue came to the fore after a Malayalam daily reported that Cochin Minerals and Rutile Ltd paid Rs 1.72 crore to the CM's daughter between 2017 and 2020.

The news report, citing the recent ruling of an Interim Board for Settlement, said the Kochi-based company previously had an agreement with Veena's IT firm for consultancy and software support services.

Despite the fact that no service was rendered by her firm, the amount was paid on a monthly basis ''due to her relationship with a prominent person'', the report had claimed, citing the deposition of the minerals company authorities before the Income Tax Department.

However, Vijayan rubbished the charges and said the allegations were made to tarnish his image and defame him.

Kuzhalnadan, in October last, had lodged a complaint with the state Vigilance Director seeking a probe into a corruption allegation against the IT company owned by Veena.