The Congress and the Bharatiya Janata Party (BJP) turned the heat on Kerala chief minister Pinarayi Vijayan on Wednesday following allegations that his daughter Veena Vijayan and her firm received monthly payments to the collective tune of ₹1.72 crore between 2017-20 from a private company even though no services were rendered by her firm.
Veena and her firm Exalogic Solutions Pvt Ltd had signed an agreement with the Cochin Minerals and Rutile Limited (CMRL) in 2017 for giving IT, marketing consultancy and software services and received a fee of ₹1.72 crore in a three-year period, Malayala Manorama newspaper reported. Recently, the New Delhi bench of the Income Tax Interim Settlement Board ruled that the payment could not be claimed as a ‘business expenditure’ of the CMRL as the services were “not rendered” by Exalogic Solutions Pvt Ltd. The Board said in its order that the payments were made through banking channels to persons “connected with a prominent person”.
“The department has demonstrated with clinching evidence the fact that applicant has made payments through banking channels to persons connected with a prominent person and thereby claim it as a deductible expense and by claiming to compensate a service which has not been rendered or received,” the ruling said.
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The Income Tax Department had conducted searches and raids at the offices of CMRL and residences of its managing director (MD) and other key officials in January 2019 and had found that there was tax evasion by exaggerating the expenses of the firm and noted payments reportedly made to prominent politicians, media houses, police officials and trade union leaders.
Congress state president K Sudhakaran said, “My personal view is that there should be a judicial inquiry into the allegations because the LDF (Left Democratic Front) government often makes deals with the Centre. Even the SNC Lavalin case, where Pinarayi Vijayan faces charges, is not getting anywhere because of under-the-table links with BJP leaders. Everyone knows that. There should be an impartial judicial inquiry.”
The BJP asked for the chief minister and the Communist Party of India or CPI(M)’s explanation on the matter.
BJP state chief K Surendran told reporters, “The chief minister and his party CPI(M) should explain these (transactions). Why was this money received and what needs were fulfilled in exchange for the money? What is the deal? If the chief minister does not clarify, will his party demand an explanation from him? The people want to know.”
CM Vijayan and his daughter Veena have not reacted to the issue so far.
