Draft:T. Veena–Exalogic controversy

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T. Veena–Exalogic controversy is a legal and political controversy involving T. Veena, daughter of Kerala Chief Minister Pinarayi Vijayan, and her now-defunct IT company Exalogic Solutions Pvt Ltd. In 2023, a report by the Income Tax Interim Settlement Board alleged that Cochin Minerals and Rutile Ltd (CMRL) had made payments totaling ₹1.72 crore to Exalogic between 2017 and 2020 for "monthly influence," despite no services being rendered.[1]

In April 2025, the Serious Fraud Investigation Office (SFIO) filed a chargesheet based on its investigation into the transactions, alleging corporate fraud under Section 447 of the Companies Act, 2013.[2] The Ministry of Corporate Affairs granted permission to prosecute the accused in a special court in Kochi.[3]

In response, Veena Vijayan and Pinarayi Vijayan denied all allegations. In counter-affidavits submitted to the Kerala High Court, they maintained that the transactions were legitimate business dealings and opposed demands for a CBI probe, arguing that the ongoing SFIO investigation was sufficient.[4]

The case has generated significant political and media attention in Kerala, with opposition parties calling for the Chief Minister’s resignation and demanding further investigation.

History

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Income‑tax settlement findings (2017–2023)

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In 2019, the Income Tax Department initiated investigations into Cochin Minerals and Rutile Ltd (CMRL). The Interim Board of Settlement (IBS‑II) later ruled in August 2023 that CMRL had made ₹1.72 crore in payments to Exalogic Solutions Pvt Ltd (owned by T. Veena) between 2017 and 2020, even though no software or consultancy services were rendered.[5]

BJP leader Shone George alleged that substantial sums were transferred from SNC Lavalin and PricewaterhouseCoopers (PwC) to a joint account of Exalogic Solutions at Abu Dhabi Commercial Bank during 2016–2019.[6] He claimed that these funds were subsequently routed to various accounts in the United States. The Serious Fraud Investigation Office (SFIO) was already probing CMRL's payments to Exalogic at the time of these allegations.[7]

SFIO investigation begins (March 2024 – April 2025)

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In March 2024, the Ministry of Corporate Affairs referred the case to the Serious Fraud Investigation Office (SFIO), prompting deeper scrutiny into alleged fraudulent corporate transactions involving Exalogic and CMRL. The SFIO investigation culminated in a chargesheet filed in April 2025, naming T. Veena and others, and alleging misuse of ₹2.7 crore in payments without legitimate services rendered.[8][9]

High Court proceedings and stay orders (May–July 2025)

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On 24 May 2025, the Kerala High Court extended an interim stay in the matter for four months, maintaining the status quo in trial court proceedings pending proper service of notices and legal scrutiny.[10]

Meanwhile, a PIL filed on 27 May 2025 by journalist M. R. Ajayan sought a CBI investigation into the ₹1.72 crore transfer. The High Court directed Veena and her father to file counter‑affidavits by 10 June 2025, postponing further hearings to 17 June.[11][12]

Veena Vijayan filed an affidavit on 12 June 2025, stating that Exalogic was not a "benami" firm, that all transactions were via proper banking channels, and rejecting any political nexus or need for CBI probe given SFIO oversight.[13]

Kerala Chief Minister Pinarayi Vijayan also filed a counter‑affidavit on 9 June 2025, denouncing the PIL as politically motivated and asserting that the Exalogic–CMRL relationship was transparent and properly taxed.[14]

On 23 July 2025, the High Court adjourned the PIL to 12 August, and another related petition to 25 August, as notices to institutions like the Income‑Tax Interim Board of Settlement remained incomplete.[15]

Impact

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The T. Veena–Exalogic controversy significantly impacted Kerala’s political landscape and generated widespread public debate across media, political parties, and civil society.

Political fallout

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Following the SFIO chargesheet, both the BJP and the Congress demanded the resignation of Chief Minister Pinarayi Vijayan, accusing him of benefiting indirectly from his daughter’s business dealings[16]. BJP leader K. Surendran accused the UDF and LDF leadership of colluding to suppress the issue politically in the Kerala assembly[17].

The Congress remained largely silent on the issue inside the Kerala Legislative Assembly, sparking internal criticism and accusations of double standards, particularly when reports emerged that UDF leaders also received payments from the same company[18].

The CPI(M) leadership defended the CM, with party general secretary M. A. Baby characterizing the allegations as politically motivated, and KPCC leader Sudhakaran emphasizing that the charges would not go away easily during the ongoing CPM congress in Madurai[19][20].

Reactions within the ruling coalition

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Tensions emerged between the CPI(M) and its coalition partner CPI. CPI State Secretary Binoy Viswam called for a clear stance on the controversy, while Education Minister V. Sivankutty defended the CM and argued that Veena was capable of defending herself legally[21].

Media and public discourse

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The controversy triggered strong media scrutiny and political commentary. NDTV and other national outlets questioned Congress party’s silence, suggesting political collusion, while commentary in The Indian Express criticized Pinarayi's prolonged silence as politically problematic in Kerala's context of accountability[22].

Effect on public perception

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The controversy heightened scrutiny of perceived conflict of interest issues involving public office and family-owned businesses. Even though no criminal conviction exists yet, it strained the image of the incumbent government in advance of upcoming state elections. In quotes and commentary, it fueled debates on the use of central agencies for political ends, enhancing public pressure for transparency and potential legal reform[23].

References

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  1. ^ "CMRL paid ₹1.72 crore to Veena Vijayan's company for no services rendered, says Income Tax report". The Hindu. August 1, 2023. Retrieved July 28, 2025.
  2. ^ "Kerala CM's daughter Veena Vijayan named in SFIO chargesheet". India Today. April 4, 2025. Retrieved July 28, 2025.
  3. ^ "Centre gives nod to prosecute Kerala CM's daughter Veena Vijayan". The New Indian Express. April 5, 2025. Retrieved July 28, 2025.
  4. ^ "Exalogic not a benami firm, no links to Pinarayi Vijayan: Veena tells Kerala HC". The New Indian Express. June 12, 2025. Retrieved July 28, 2025.
  5. ^ "Kerala CM's daughter and her company got Rs 1.72 cr for services not provided, rules I‑T body". The News Minute. 9 Aug 2023. Retrieved 28 Jul 2025.
  6. ^ "Exalogic Solutions allegedly received crores from PwC and Lavalin in UAE bank account". The Times of India. Retrieved 2025-08-09.
  7. ^ "Shone George seeks SFIO probe into Exalogic's overseas account". The Times of India. Retrieved 2025-08-09.
  8. ^ "SFIO charges Kerala CM's daughter with corporate fraud". Times of India. 4 Apr 2025. Retrieved 28 Jul 2025.
  9. ^ "Centre approves prosecution of Kerala Chief Minister's daughter in CMRL case". India Today. 4 Apr 2025. Retrieved 28 Jul 2025.
  10. ^ "SFIO report in CMRL case: Kerala HC extends status quo in proceedings before special court". Times of India. 24 May 2025. Retrieved 28 Jul 2025.
  11. ^ "Plea seeking CBI probe into Exalogic issue: Kerala HC directs CM Pinarayi Vijayan, daughter to file affidavits". Times of India. 27 May 2025. Retrieved 28 Jul 2025.
  12. ^ "HC adjourns hearing in plea for CBI probe into Exalogic affairs". Times of India. 17 Jun 2025. Retrieved 28 Jul 2025.
  13. ^ "Exalogic not a 'benami' firm, no links to Pinarayi Vijayan: Veena T tells Kerala HC". The New Indian Express. 12 Jun 2025. Retrieved 28 Jul 2025.
  14. ^ "Exalogic case: CM Pinarayi Vijayan files affidavit in Kerala high court opposing CBI probe". Times of India. 9 Jun 2025. Retrieved 28 Jul 2025.
  15. ^ "Exalogic affairs: Kerala high court adjourns plea for CBI probe". Times of India. 23 Jul 2025. Retrieved 28 Jul 2025.
  16. ^ "Congress, BJP demand CM Vijayan's resignation over bribery case involving daughter". Onmanorama. 3 Apr 2025. Retrieved 28 Jul 2025.
  17. ^ ""Why Silence?": BJP Asks Congress Over Kerala Chief Minister's Daughter's Corruption Charges". NDTV. 11 Aug 2023. Retrieved 28 Jul 2025.
  18. ^ "A sense of anti‑climax as UDF keeps mum on graft charge against Kerala CM Pinarayi Vijayan's daughter in House". The Hindu. 11 Aug 2023. Retrieved 28 Jul 2025.
  19. ^ "CPI(M) general secretary M A Baby defends Kerala CM Pinarayi Vijayan's daughter in 'illegal payment' case". Times of India. 7 Apr 2025. Retrieved 28 Jul 2025.
  20. ^ "SFIO's findings against Vijayan's daughter 'drama with political agenda', says CPI(M)". Hindustan Times. 5 Apr 2025. Retrieved 28 Jul 2025.
  21. ^ "Pinarayi Vijayan daughter's case: War of words erupt between Communist parties". The News Minute. 12 Apr 2025. Retrieved 28 Jul 2025.
  22. ^ "Amid allegations against daughter, Pinarayi Vijayan maintains a loud silence". The Indian Express. 23 Aug 2023. Retrieved 28 Jul 2025.
  23. ^ "Why Pinarayi said Congress colluding with BJP against his daughter T. Veena". India Today. 12 Sep 2023. Retrieved 28 Jul 2025.