Centre Initiates SFIO Probe into Alleged Fraud Involving Veena Vijayan’s IT Firm and CMRL
The Central government has authorized the Serious Fraud Investigation Office (SFIO) to investigate allegations of fraud related to Veena Vijayan’s IT firm and Cochin Minerals and Rutile Limited (CMRL). SFIO, operating under the Ministry of Corporate Affairs, is tasked with examining serious corporate frauds. A dedicated six-member team led by additional director Prasad Adelli, along with senior officials from the Ministry of Corporate Affairs, has been appointed to investigate the matter. The team is mandated to submit a comprehensive report within eight months.
The move comes in response to a controversy in Kerala surrounding a news report that surfaced last year, revealing that CMRL disbursed a total of Rs 1.72 crore to the Chief Minister’s daughter between 2017 and 2020. The report alleged that the payments were made to Veena Vijayan’s IT firm under a consultancy and software support services agreement, despite no services being rendered. The payments were purportedly made due to her relationship with a prominent person. Opposition parties in Kerala had previously called for a central agency probe into the matter.
The Kerala High Court had recently questioned the Central government about its intentions regarding a potential SFIO investigation, prompting the government to confirm the initiation of an investigation under section 210 of the Companies Act into the affairs of the two companies. Earlier, a report submitted by the Registrar of Companies (ROC) to the Ministry of Corporate Affairs raised concerns about the financial dealings between Veena’s firm and CMRL. This latest development adds to the challenges faced by Chief Minister Pinarayi Vijayan, who is now grappling with the SFIO probe into the alleged fraudulent activities involving his daughter’s firm and CMRL.
