In a major setback for Kerala's Left Democratic Front (LDF) government, the Union Ministry of Corporate Affairs has given the green light to start legal action against Chief Minister Pinarayi Vijayan’s daughter, T Veena. She is accused of receiving illegal payments from Cochin Minerals and Rutile Limited (CMRL).

The clearance was given after the Serious Fraud Investigation Office (SFIO) filed its charge sheet in the Special Court for Economic Offences in Kochi. As per the SFIO’s investigation, Veena and her company, Exalogic Solutions, took Rs 2.73 crore from CMRL without actually providing any IT services. The SFIO mentioned that although a formal agreement existed between the two parties, the payments were fake and not justified. The issue first came to public attention on August 8, 2023, when it was revealed that Exalogic received ₹1.72 crore from CMRL between 2017 and 2020, even though no services were provided. Following this revelation, the central government asked the SFIO to carry out a detailed investigation.

In its 160-page prosecution complaint, the SFIO named Veena, CMRL's Managing Director Sasidharan Kartha, and 25 others as accused. Several companies were also listed, including CMRL, Exalogic Solutions, and its subsidiary, Empower India Capital Investments. The agency found that Veena had misused funds from the subsidiary company. Veena has been charged under Section 447 of the Companies Act, 2013, which deals with corporate fraud. This law applies when the fraud involves either at least ₹10 lakh or 1% of a company’s turnover. If proven guilty, the person can be jailed for six months to ten years and may also have to pay a fine that is three times the amount of the fraud. The SFIO (Serious Fraud Investigation Office) found that Veena’s company had received a total of ₹2.70 crore from CMRL. Separately, in 2023, the Income Tax Interim Settlement Board reported that ₹1.72 crore was paid, based on statements from CMRL staff.

Opposition Leader VD Satheesan reacted strongly to the developments, stating, “The Serious Fraud Investigation Office's inclusion of the Chief Minister's daughter Veena Vijayan as an accused in the case is an extremely serious matter. The Serious Fraud Investigation Office charge sheet confirms the allegation that she received remuneration without providing any service. The Chief Minister's daughter committed an offence punishable by up to ten years in prison." He further said, “Veena Vijayan's company received 2.7 crore rupees only as the Chief Minister's daughter without providing any service. In this situation, the Chief Minister should take moral responsibility for the corruption and resign. It is not appropriate for Pinarayi Vijayan to continue as the Chief Minister even for a moment. How can he justify his daughter facing prosecution while sitting in the Chief Minister's position?"

“All the allegations made by the opposition regarding the monthly allowance have been proven to be true. What more do those who have defended the Chief Minister for so long have to say? The Communist Party of India (Marxist) central leadership should also clarify its position on such a serious issue," Satheesan asserted.