The Serious Fraud Investigation Office (SFIO) has filed a prosecution complaint in the Cochin Mineral Rutile Limited (CMRL) bribery case, naming 27 individuals, including Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan, as accused. The complaint was submitted before the Economic Offences Court in Kochi, marking a significant development in the high-profile corporate fraud case.
Key Allegations Against Veena Vijayan and Exalogic Solutions
Among the 27 accused are several top officials of CMRL, including its Managing Director Sasidharan Kartha. Veena Vijayan and her company, Exalogic Solutions, have been charged under Section 447 of the Companies Act, which deals with fraud exceeding Rs 10 lakh or 1% of a company’s turnover. Convictions under this provision carry a prison sentence ranging from six months to 10 years.
The investigation into CMRL’s financial transactions began after a Registrar of Companies (RoC) report flagged potential fraudulent activities. The SFIO launched a detailed probe in January 2024, uncovering alleged financial irregularities linked to payments made by CMRL to Exalogic Solutions.
Unaccounted Payments and “Evasive” Responses
The Income Tax Interim Settlement Board had earlier determined that Veena Vijayan received Rs 5 lakh per month individually, while Exalogic Solutions received Rs 3 lakh monthly between 2017 and 2020 from CMRL. These payments were reportedly made for marketing consultancy and software services. However, the probe found no evidence of services being provided.
When questioned, Veena’s responses were deemed evasive. She failed to clarify:
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Why she received Rs 55 lakh in her personal capacity while being a director of Exalogic Solutions
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Whether she provided services as an individual separate from her company
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Why no documentation or proof of services existed
“Related Party” Transactions and Dormancy Status Controversy
Another key issue is the alleged non-disclosure of a related party transaction. The government-run Kerala State Industrial Development Corporation (KSIDC) holds a 13.4% stake in CMRL, potentially making the Exalogic deal a “related party” transaction under corporate governance laws. However, Veena failed to disclose this, which could be a violation of regulatory norms.
Additionally, Exalogic filed for “dormant status” in November 2022, claiming it had ceased business activities for over two years. However, records contradict this claim, showing active transactions until May 2021. According to Section 455 of the Companies Act, a company must not have conducted business for two years before applying for dormancy, making the application questionable.
Legal Consequences and Next Steps
With the SFIO chargesheet filed, the court will now decide whether to summon the accused for trial. The case has major political implications, as Veena is the daughter of the Kerala Chief Minister. While she is likely to deny any wrongdoing, the investigation could lead to severe legal consequences if proven guilty.
As the case unfolds, the spotlight remains on how the judicial system will handle these serious fraud allegations and whether further political ramifications will follow.
