Kerala CM’s daughter accused of receiving Rs 1.72 crore in illegal payments

New Delhi: The release of a report by the Interim Board for Settlement under the Central Board of Taxes has sent shockwaves through Kerala’s political arena, raising allegations of substantial illegal payments involving Kochi-based Cochin Minerals and Rutile Limited (CMRL) and its managing director Sasidharan Kartha. 

This report has unleashed a storm in the state’s politics, disclosing alleged payments made to politicians, political parties, police officials, media houses, journalists, and others, all purportedly to ensure the smooth operation of businesses.

The report also contends that “illegal payments” amounting to Rs 1.72 crore were allegedly made to Veena T, the daughter of Chief Minister Pinarayi Vijayan. This report’s release has initiated a fierce political firestorm, with various parties denying wrongdoing on their part.

This investigation into CMRL, a mineral processing, and exporting firm, was initiated following Income Tax searches conducted on the company’s premises in 2019, which reportedly revealed unaccounted money and payments to various individuals. 

In 2020, CMRL and Kartha filed a settlement application seeking immunity from prosecution and penalties under various provisions of the Income Tax Act for assessment years 2013-14 to 2019-20.

The report’s findings, based on the Income Tax Department’s investigations, point to alleged illicit payments being made, including those to Pinarayi Vijayan, former CM Oommen Chandy, senior Congress legislator Ramesh Chennithala, and Indian Union Muslim League leaders P K Kunhalikutty and V K Ibrahim Kunju.

The report also mentions CMRL Chief Finance Officer Suresh Kumar’s explanation of abbreviations used in documents seized during the Income Tax Department’s search. These abbreviations, such as PV, OC, KK, IK, RC, and AG, reportedly correspond to Pinarayi Vijayan, Oommen Chandy, Kunhalikutty, Ibrahim Kunju, Ramesh Chennithala, and A Govindan. However, the amounts allegedly paid to these individuals remain unspecified.

The controversy deepens with the alleged payment of Rs 1.72 crore to Veena T from 2017-18 to 2019-20 under the pretext of providing software solutions, despite evidence suggesting no such service was rendered. CMRL had engaged Veena’s firm, Exalogic Solutions Private Limited, for software development and management. However, discrepancies arise between payment agreements and actual services rendered, according to the report.

The Income Tax Department’s findings indicate that payments were made outside banking channels to ensure uninterrupted business operations, a justification CMRL has put forth. However, the issue has drawn attention to the broader context of political rivalry and power dynamics within the state.

With Kerala’s political landscape now a battleground for allegations and counter-allegations, key figures such as Vijayan and Veena have remained silent. Amidst these serious allegations, both the CPI(M) and the Congress have offered their explanations, emphasizing legality and transparency in transactions. Meanwhile, the public awaits further developments as the controversy unfolds, underscoring the complex interplay between business, politics, and governance in the state.