Plea for CBI probe against CM over CMRL-Exalogic transactions a 'fishing inquiry': Veena to HC

Kochi | Veena T, daughter of Chief Minister Pinarayi Vijayan, has termed as "fishing and roving inquiry" a plea in the Kerala High Court here for a CBI probe against her father for allegedly receiving kickbacks from a private mining company.

The plea by journalist M R Ajayan has alleged that the CM received kickbacks from Cochin Minerals and Rutile Ltd (CMRL).

The petitioner has also claimed that the Interim Board of Settlement, in connection with Income Tax proceedings against CMRL and its Managing Director S N Sasidharan Kartha, had found that the mining company had made payments to Veena's firm, Exalogic.

In his petition, he has also alleged that money was routed to Vijayan through his daughter's firm by CMRL.

Refuting the allegations, Veena has claimed that her father has had no role in the business of Exalogic which was founded in 2014 by her, before Vijayan became CM in 2016, and was managed and operated by her.

"The PIL fails to identify any favour done to CMRL, any decision influenced by me or my father in favour of CMRL and any quid pro quo or kickback received as a result of such favour.

"Therefore, any breach of contract or illegality pertaining to these private agreements between CMRL and Exalogic, if at all, would fall within the domain of civil or commercial law and cannot be the subject matter of a PIL...," she said in her response to the plea.

She termed the petition as "a textbook example of 'luxury litigation' brought with the objective of public spectacle, not public interest" and has no concrete or verifiable evidence.

Veena has contended that the petitioner relies solely on findings of the Interim Settlement Board in tax proceedings instituted against CMRL and Kartha to claim that payments made to Exalogic were somehow illegal.

"Neither I nor Exalogic was a party to those proceedings at any stage. In any case, by virtue of section 245-I of the Income Tax Act 1961, there is a bar for relying on the findings in the settlement order..," she has asserted in her response.

She further contended that all financial transactions between Exalogic, herself and CMRL were conducted through legitimate electronic means, "ensuring complete traceability and transparency".

"Furthermore, the payments made by CMRL to Exalogic were strictly in accordance with valid contractual agreements for the provision of IT services.

"These transactions, including the payments received, have been fully disclosed to the income tax authorities and are duly accounted for in our financial records," she has said.

Regarding allegations in the plea about income affidavits filed by her husband, P A Mohammed Riyas, during the 2021 assembly polls in the state, she said that all disclosures were made in accordance with the format prescribed by the Election Commission.

She also clarified that Riyas was not a shareholder, director or beneficiary of Exalogic.

"He has had no connection with its business or operations at any time," she said.

She further said that the issues raised in the PIL were subject matter of a probe and related proceedings by the Serious Fraud Investigation Office (SFIO) and therefore, as per provisions of the Companies Act, there is "no room for a parallel or overlapping investigation" by other agencies, including the CBI.

She has sought dismissal of the plea against her and her firm with exemplary costs.

The SFIO had in April this year filed a chargesheet in the case against CMRL and various others, including Veena and her now-defunct IT firm Exalogic, in connection with an "illegal payment" scandal.

The reported SFIO action came nearly a week after the Kerala High Court dismissed a plea by Congress MLA Mathew Kuzhalnadan seeking a vigilance probe against Vijayan over the alleged financial transactions between private mining company CMRL and Exalogic.

According to the reports, the SFIO investigation has uncovered a Rs 182 crore financial fraud within the mining company, in which several others are also accused.

It stated that the fraud was carried out by inflating non-existent expenses and creating fake bills.

The SFIO investigation reportedly also found that Veena had received Rs 2.7 crore from the private mining company without providing any services, an allegation denied by Vijayan.