Centre Informs Kerala High Court of Investigation into Firm Linked to CM Pinarayi Vijayan’s Daughter

Background

The Centre has ordered an investigation under the Companies Act 2013 into the affairs of Exalogic Solutions Ltd, an IT company owned by Veena Thaikkandiyil, the daughter of Kerala Chief Minister Pinarayi Vijayan. The order was issued after allegations surfaced that the company received kickbacks from Cochin Minerals and Rutile Ltd (CMRL), a public limited company, without providing any services.

Allegations

According to a report by a Malayalam daily, CMRL paid a total of Rs 1.72 crore to Exalogic Solutions between 2017 and 2020 for consultancy and software support services. However, an order passed by the Income Tax Interim Board of Settlement suggested that the amount was paid by CMRL to Exalogic without availing any services, and that it was done “due to her relationship with a prominent person”. The report also claimed that CMRL had links with some ruling party leaders and that it was involved in illegal mining activities.

Petition

Based on these allegations, a writ petition was filed by lawyer Shone George in the Kerala High Court seeking action against Exalogic Solutions and CMRL under the Companies Act and by the Serious Fraud Investigation Office (SFIO). The petitioner also sought a direction to the Kerala State Industrial Development Corporation Ltd (KSIDC) to cancel the allotment of land to Exalogic Solutions in Technopark, Thiruvananthapuram.

Response

The Ministry of Corporate Affairs informed the Kerala High Court that an order has been issued under Section 210 of the Companies Act 2013 to investigate the affairs of Exalogic Solutions. The counsel for the Centre also said that a copy of the order will be produced before the court by January 19. The single bench of Justice Devan Ramachandran directed the Centre to file the order on record and also to obtain specific instructions if any further action by the SFIO has been ordered or found warranted in the case. The court also gave liberty to the respondents, including the chief minister, his daughter, her company, CMRL and KSIDC, to respond to the Centre’s order. The matter will be heard next on January 24.