BJP claims Kerala CM Vijayan could face corruption probe over 'Veena Tax'

Kerala Chief Minister Pinarayi Vijayan could face investigation on corruption charges after his daughter’s company got Rs 1.7 crore from a Kerala-based firm without providing any service, the BJP alleged on Thursday.

BJP national spokesperson Tom Vadakkan claimed the Income Tax Department had gathered evidence that the money was given to Veena Vijayan’s Exalogic Solutions by the Cochin Minerals and Rutile Ltd (CMRL).

Vadakkan, who is from Kerala and was formerly in the Congress, dubbed it “Veena Tax” and said she got the money for the last three years.

“The New Delhi bench of the Income Tax Interim Settlement Board ruled that the money was given considering the relationship with a prominent person. Veena and her company, Exalogic Solutions, had agreed to supply CMRL with IT, marketing consulting and software services,” Vadakkan said.

But the income tax examination discovered that no services were provided, he said.

CMRL view

CMRL Managing Director SN Sasidharan Kartha said the money was paid in monthly instalments as per the contract, Vadakkan added.

“The Income Tax Department alleged that Veena and Exalogic received Rs 1.72 crore during 2017-20, which is an illegal transaction. The department has been able to demonstrate with the help of convincing evidence that the money was paid for services that were not provided, according to a settlement board.”

Given the nature of these allegations, it was necessary that the matter be investigated, Vadakkan said. An enquiry by central investigative agencies was essential, he added.

Documents seized from the residence of CMRL’s chief financial officer KS Suresh Kumar, who worked with the company for 27 years, and his statement revealed that prominent leaders from the Congress, Muslim League and the CPI(M) received up to Rs 95 crore, the BJP leader claimed.

(With agency inputs)