Kerala: SFIO Begins Probe On CM's Daughter's Firm, UDF And BJP Seek His Resignation

Leader of Opposition V D Satheesan, addressing the media after boycotting the assembly proceedings, accused the Chief Minister of avoiding a discussion on the inquiry.

In a first reaction to charges against his daughter T Veena's now-defunct IT company, Kerala CM Pinarayi Vijayan said that his hands were clean and the allegations would not affect him.

Source : Facebook/PinarayiVijayan

The Serious Fraud Investigation Office (SFIO) initiated an investigation into the IT firm of Kerala Chief Minister Pinarayi Vijayan's daughter on Friday. In response to the inquiry, the Opposition Congress and BJP criticized Chief Minister Pinarayi Vijayan and called for his resignation, citing allegations that the firm received funds in exchange for favors from the Chief Minister.

Leader of Opposition V D Satheesan, addressing the media after boycotting the assembly proceedings, accused the Chief Minister of avoiding a discussion on the matter. Satheesan claimed that it was the ruling front that created disturbances in the assembly, and with the SFIO initiating an investigation, he called for Chief Minister Vijayan's resignation in light of the allegations.

Similarly, BJP state President K Surendran asserted that the Chief Minister should step down amid the SFIO probe. Alleging that Vijayan had fled from the assembly, Surendran claimed the payments to Veena's company were intended to secure government favors.

"He is not entitled to continue in his position," K Surendran said.

Why Probe On Transactions Of Veena Vijayan's IT Firm?

Initially, a media report, citing an Income Tax Department source, alleged that the Chief Minister's daughter's company had received Rs 1.72 crore from the mining company CMRL, in which the state-owned Kerala State Industrial Development Corporation (KSIDC) holds a stake. The transactions reportedly took place between 2017 and 2020.

The report also said that despite the transactions on a monthly basis no services were offered by her firm.

First-time Congress MLA Mathew Kuzhalnadan raised the issue leading to a preliminary probe by a three-member team of the Registrar of Companies. Even the report submitted by Registrar of Companies (ROC) to Corporate Affairs Ministry a few months back raised suspicions over the financial dealings between Veena's company and CMRL. The findings prompted the SFIO to take over the investigation.

A six-member SFIO team has commenced an inquiry into the dealings of all three entities involved - Veena's firm, KSIDC, and CMRL. The SFIO, operating under the Ministry of Corporate Affairs, holds significant authority, including the power to arrest those found culpable, making it the highest level of probe in such matters.