ED files money-laundering case against Kerala CM’s daughter, her IT firm

 The Enforcement Directorate (ED) has initiated a money-laundering investigation into allegations that a private firm in Kochi made unlawful payments to an IT company owned by Veena Vijayan, the daughter of Kerala’s Chief Minister Pinarayi Vijayan, among others, according to official sources.

The case, registered under the Prevention of Money Laundering Act (PMLA), was filed by the ED, which plans to summon the supposed recipients of these funds and others implicated in the case.

The ED’s action follows a complaint lodged by the Serious Fraud Investigation Office (SFIO), a branch of the Union corporate affairs ministry.

The case was brought to light when the income tax department discovered that Cochin Minerals And Rutile Limited (CMRL) allegedly made an unlawful payment of Rs 1.72 crore to Veena Vijayan’s company, Exalogic Solutions, in 2018 and 2019, despite the fact that the IT firm had not rendered any services to the private company.

Last month, the Karnataka High Court rejected a petition from Exalogic Solutions challenging the SFIO’s investigation.

Reports citing the Income Tax Interim Board for Settlement indicate that the Kochi-based company had a prior agreement with Veena Vijayan’s firm for consultancy and software support services. However, despite no services being provided by Veena Vijayan’s firm, payments were made monthly due to her connection with a notable individual, according to the reports, which reference the testimony of the mineral company’s authorities before the income tax department.

The chief minister has dismissed the allegations, claiming they were designed to damage his reputation and slander him.

The ED intends to investigate all alleged unlawful payments made by the private company to individuals with political connections and influence, according to sources.