ED files money-laundering case against Kerala CM's daughter

The Enforcement Directorate (ED) has filed a money-laundering case against Kerala Chief Minister Pinarayi Vijayan's daughter Veena Vijayan and her IT firm for receiving 'illegal payments' from a Kochi-based private firm, 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, sources said.

Sources also said the ED will probe all the alleged illegal payments made by the private company to 'influential and politically-linked persons'.

The ED booked Veena Vijayan and her company 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.

Reacting strongly to the registration of the case, the Communist Party of India-Marxist in Kerala accused the Central probe agency of doing 'daily labour' for the ruling Bharatiya Janata Party at the Centre.

Meanwhile, the opposition Congress, which has been alleging a secret pact between the saffron party and CPI-M in the state, however, reacted cautiously and raised suspicions that it was an 'election stunt' ahead of the Lok Sabha polls, while BJP justified the move, saying corrupt people should have to face the consequences too.

The case came to light after the income-tax department found that Cochin Minerals And Rutile Limited (CMRL) made an alleged 'illegal payments' 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.

Even though 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.

Criticising the ED move, CPI-M state secretary M V Govindan asked whether the agency had any credibility.

The ED was one of the prominent agencies in the country, which the Supreme Court had said had lost its credibility, he said at a press conference in Kochi.

"It (the case) will be dealt with properly," he said in response to queries about the ED case.

Replying to a question as to whether the CM was being targeted through the Central probe, he said: "You can target anyone politically. But the question is, who is targeting? It (ED) is doing the daily labour for the BJP."

Further, he alleged that earlier Central agencies were used for political gains only, but now they are also used by the Union government and the BJP for amassing money from black money holders and offenders by threatening them.

"The party (the CPI(M)) and its people are not the ones who will surrender to such tactics and cases," Govindan added.

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