Kerala: SFIO names Veena Vijayan and CMRL officials as accused in monthly pay-off case

Thiruvananthapuram: The Serious Fraud Investigation Office (SFIO) has filed a charge sheet naming Veena Vijayan, the daughter of Kerala Chief Minister Pinarayi Vijayan, as an accused in the controversial monthly payment case. Along with Veena, Exalogic Solutions, Sasidharan Kartha (the Managing Director of CMRL), and CMRL’s sister company Empower India have also been named in the case. The charges allege that Veena Vijayan received a sum of Rs 2.70 crore without providing any legitimate services.

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The Union Ministry of Corporate Affairs has granted permission for the prosecution of Veena Vijayan, Sasidharan Kartha, P. Suresh Kumar (CMRL’s CGM of Finance), and others involved. The investigation revealed that Veena and Exalogic Solutions received the illegal payment, which originated from CMRL and Empower India. Sasidharan Kartha, along with his wife, is also listed as a director of Empower India, which is central to the fraudulent transactions.

Charges have been filed under Section 447 of the Companies Act, which includes penalties such as imprisonment ranging from six months to ten years, along with a potential fine equal to the fraud amount or up to three times that amount. The case is now moving forward in the Kochi court, where summons will soon be issued to the accused, including Veena Vijayan.

In addition to these charges, further allegations have been made against Sasidharan Kartha and the CMRL Board of Directors. The investigation suggests that CMRL is involved in a much larger fraud, amounting to Rs 182 crore. This fraud allegedly involved inflating non-existent expenses and submitting fake bills, carried out through two companies: Nipun International Private Limited and Sasja India Private Limited. Both companies are linked to Sasidharan Kartha and his family.

The developments come 14 months after the investigation began in January 2024. Initially, the illegal payment had been approved by the Income Tax Department's Interim Settlement Board and the Registrar of Companies (ROC). However, the SFIO’s findings have now revealed the full extent of the financial irregularities, which will lead to prosecution proceedings against Veena Vijayan and other key figures involved.

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