Kerala CM Pinarayi Vijayan’s daughter set to face money laundering probe by ED

Subsequently, the Serious Fraud Investigation Office (SFIO), under the Ministry of Corporate Affairs, also launched a probe against Veena’s firm. Earlier, the Karnataka High Court rejected a petition filed by Exalogic Solutions challenging the SFIO probe.

Last week, the Union Ministry of Corporate Affairs approved prosecution proceedings against Veena following a chargesheet filed by the SFIO in a Kochi court.

“We have written to SFIO seeking case papers in the matter. The charges slapped by SFIO in its chargesheet fall under predicate offences listed under the Prevention of Money Laundering Act (PMLA). We will examine the papers and then register a case,” a senior ED official said.

Sources said the SFIO has booked Veena under Section 447 (punishment for fraud) of the Companies Act, 2013, which is a predicate offence under the PMLA.

The SFIO has alleged that Exalogic Solutions received a total of Rs 2.7 crore from CMRL. These payments were made under an agreement between Exalogic Solutions and CMRL to provide IT services, but no such services were provided, the SFIO has alleged.

The SFIO counsel said in court that CMRL had made transactions adding up to Rs 135 crore to various political figures, including the alleged payment to Exalogic.

Sources in the Kerala Chief Minister’s Office said the CMO was not involved in the matter, and the person concerned would fight the case.

Flagging the case against Veena, both the BJP and Congress have demanded Vijayan’s resignation. The CPI(M) has called it a “politically motivated” case.

In an interview to a TV channel on Monday, M A Baby, the newly elected CPI(M) general secretary, said the facts of the case showed that Veena had not done anything wrong. The case was fabricated against her because she is Vijayan’s daughter, he said. “To attack the CPI(M) and the LDF in Kerala, they have to hit at its head….and its head is Pinarayi Vijayan,” he said.