All hell broke lose in Kerala political circles on August 8 when local media reports revealed that a Kochi-based mineral company allegedly made a payment of Rs 1.72 crore under “bogus claims” to Kerala Chief Minister Pinarayi Vijayan's daughter.
The reports, based on the verdict of the New Delhi bench of the income tax interim settlement board on June 12, claimed that the CM's daughter Veena Thaikandiyil had accepted a 'bogus payment' from Cochin Minerals and Rutile Limited (CMRL)—a controversial company working in the domain of converting ilmenite into synthetic rutile and ferric chloride. Although the report was published during an ongoing assembly session, the opposition alliance, UDF, refrained from raising it as an adjournment motion on the floor, citing technicalities.
However, during the discussion of the Kerala Government Land Assignment (Amendment) Bill, 2023, young Congress MLA Mathew Kuzhalnadan attempted to address the issue. But his efforts were thwarted by the speaker and the treasury bench.
After he was denied a chance to bring up the current scandal in the assembly, Kuzhalnadan has held a series of press conferences. He has challenged the ruling Communist Party of India (Marxist) and the CM to initiate an investigation into the corruption allegations against his daughter, Veena, and to release her account and income tax details. He has also questioned the position of CPI(M), which asserts that the money Veena received was payment for services rendered. He has challenged the party to produce evidence of IGST payments, reasoning that even though her company is based in Bengaluru, a portion of the GST she pays for services delivered to a Kerala-based company should be credited to Kerala. Additionally, the Congress leader has submitted a complaint to Finance Minister K. Balagopal, asserting that Veena has not fulfilled her tax obligations regarding the Rs 1.72 crore she received from CMRL.
Interestingly, the Congress leader is now facing investigations by multiple Kerala state government agencies over allegations of amassing illegal wealth, tax evasion, and engaging in illegal landfilling. Nonetheless, Kuzhalnadan is keeping his fight mode on. Excerpts from an interview with Kuzhalnadan:
In one of the recent Facebook posts from former Finance Minister Thomas Issac asserts that the consultancy agreement between Exalogic and CMRL, as well as the "remuneration" provided for these services, had no impact on the black sand mining policy of the LDF or the Pinarayi Vijayan government. To date, neither the media nor the opposition has been able to substantiate or present any such allegations. In light of this, he questions the basis for all the current commotion. Your comments?
When we look at the whole issue, we can understand that there is a nexus between CM's daughter and this particular company. And there's a lot of transactions which has happened, white as well as probably black. So first they need to explain what is the nexus between this. And if you look at the CM's daughter's company, Exalogic, they claim to have developed some education-related software. So I wonder how come a mining company will benefit from this. It's all very cloudy and there are a lot of discrepancies in the reasons and justifications provided by the CPI(M).
And moreover, we all know that this company has substantial business interests in Kerala. And they have been attempting to start [direct] mining in coastal Kerala for long. I am well aware that this government has facilitated mining in the coastal region of Alappuzha, despite the widespread protests from the local residents. I had opportunity to take up that fight legally, but I have seen the stance of the governments, especially the state government. So definitely, this government has been very much supportive of mining in coastal Alappuzha.
Your complaint against Veena Vijayan has been forwarded by the finance minister to the revenue secretary. According to reports, the GST Commissionerate will conduct an investigation to determine whether Veena has paid the IGST. What are your expectations regarding the findings of the GST Commissionerate’s investigation?
I have done my own homework. I am well aware of the fact that she has not paid IGST for this particular amount as it was not received against any service. Why I raised this issue was because the CPI(M) State Secretary (M.V. Govindan) defended Veena Vijayan. They (CPI(M)) claimed that the amount received was for some service so there's nothing wrong with it. So my first point is to prove that there is no such service and there's no IGST paid. So that shows it's bribery. This is illegal money received by the kickback received by the CM's daughter. My whole fight is to prove that I'm not after the GST. I'm not after the tax component.
If it is indeed found that Veena's company failed to pay the IGST, what would be the subsequent course of action?
We will take it up politically as well as legally.
You have raised a serious allegation that Veena’s One Person Company Exalogic has received foreign money without having any service export filed in her I-T returns. Could you please explain the kind of violations involved?
I have gone through the documents submitted by her company. The auditor's report says that there is foreign currency received. But when we look at the I-T return, if at all we have delivered any foreign service, it has to be shown as export service. No such mention is there in the I-T. So a plain reading of both documents shows that foreign money was received by the company without providing any service. That is the possible conclusion.
You said that what we see right now is the tip of the iceberg. Are you suggesting that Veena Vijayan’s Exalogic received bribes from multiple firms like this for providing no service? Is there any crucial evidence in your hand to make such an allegation?
Yes. I repeatedly demanded to disclose the various contracts or arrangements or retainership or whatever it is. I have information and evidence that this is not a single case. She has received such amounts from many different companies.
Do you have the evidence for that in your hand?
Yes
So, are you planning to release it in the coming days?
I'm just waiting for the response from the other side.
You mentioned in one of your press meetings that Veena’s company received Rs 39 lakh as a loan from the CMRL owners. I’m curious whether it is possible to know what would happen to this loan amount, provided that Exalogic is in dormant status now.
It shows that a company owned or managed by Sasidharan Karta’s wife has extended a loan to the tune of almost 39 lakhs. However, the accounts in the later years show that the loan was repaid. But we are not sure about how it was repaid. It was a digital online transaction whereby the payment has been made. And for the later years, it shows as if it is repaid. But we don't know if it was a bank transfer or whether it was actually paid or it is just a correction made on the papers.
What are the kind of actions you are planning for the upcoming assembly session in relation to this controversy?
That we may have to discuss with the opposition leader. Whatever he decides or whatever he suggests, we will go by that.
CPI(M) leaders like Thomas Issac commented that you are continuing the diatribe against the CM and his daughter in order to divert attention from your own wrongdoings, including the amassing of disproportionate wealth. Are you feeling that the government is coming after you, with the kind of retaliatory measures against you?
Definitely, it is in the expected lines. Whenever we put up a fight with the CM, we should be prepared to face all such consequences, especially when a person like Pinarayi Vijayan is sitting on the seat. This was expected but I will fight it out, no problem.
You said you are getting a lot of support from common people. Could you please share a little bit about that experience?
The Kerala society is so desperate to see someone willing to fight this corruption, honestly. And they are looking forward to someone who can take over this part. And I have received messages and phone calls from multiple people across the globe expressing their solidarity. They say, ‘We are praying for you. All prayers are with you. But only one thing, please don't stop this. You fight them. God will give you courage and all power to you’. I never knew that Kerala people were so frustrated, so disappointed [with the ruling party in Kerala].
