"What exactly is the issue?": Pinarayi Vijayan defends CMRL-Exalogic case
Former CM Pinarayi Vijayan defends Exalogic transactions, claiming all payments were properly accounted for amidst ED investigations.
Former Kerala Chief Minister Pinarayi Vijayan has broken his silence regarding the ongoing controversy surrounding transactions between CMRL and Exalogic Solutions. Defending the legality of the business dealings, Vijayan questioned the basis of the allegations, asserting that the financial transactions were legitimate and fully documented.
"Everything was done properly," says Vijayan
Addressing the media on Saturday, Vijayan sought clarity on the nature of the investigation into Exalogic Solutions, a firm linked to his daughter, T Veena. He maintained that the relationship between the two entities was a standard commercial arrangement.
"What exactly is the issue in the matter related to Exalogic?" Vijayan asked. He explained that Exalogic entered into a contract with CMRL, which he described as a separate entity, to provide specific services. According to the former Chief Minister, receiving payment for services rendered is a normal business practice and nothing unusual.
Vijayan further emphasized the transparency of the transactions, stating:
- The money received by the company has been properly accounted for.
- All necessary taxes on the income have been addressed as per the law.
- Required amounts have been remitted to the government.
He argued that an offense would only exist if the money had not been accounted for, a claim he insists is not the case here.
The Enforcement Directorate's Investigation
The controversy stems from allegations involving payments made by CMRL to Exalogic Solutions. The Enforcement Directorate (ED) has previously sought the registration of an FIR against Pinarayi Vijayan, his daughter T Veena, and his son-in-law, MLA PA Mohamed Riyas.
The investigation has intensified following several rounds of searches conducted by the federal agency:
- May 27 Searches: The ED's Kochi zone conducted raids at 10 different premises, spanning locations such as Kottayam, Ernakulam, Kannur, Trivandrum, and Bengaluru. These searches targeted CMRL directors and Exalogic Solutions.
- Recent Operations: Follow-up searches were conducted at eight locations in Kozhikode.
According to officials familiar with the matter, the May raids yielded new evidence regarding an alleged money trail involving Veena. During those operations, investigators reportedly recovered digital evidence, incriminating records, investment details, and bank fixed deposits.
Financial Impact and Company Structure
The scale of the investigation is significant, with the ED having frozen approximately Rs 18.36 crore across roughly 242 identified accounts. Authorities are currently analyzing the evidence recovered during these raids.
For context, CMRL is a publicly listed company. As of March 31, 2023, the general public holds 48.75 per cent of its shares, while the Kerala State Industrial Development Corporation, a state public sector unit, holds 13.41 per cent.
While the political heat rises, State Home Minister Ramesh Chennithala has stated that the investigation should not be viewed as a "political witch hunt" against the former Chief Minister.