Karnataka HC dismisses petition by Kerala CM’s daughter’s firm challenging SFIO investigation

PTI, Feb 17, 2024, 8:37 AM IST

The High Court of Karnataka on Friday dismissed a petition filed by a private firm linked to Kerala Chief Minister Pinarayi Vijayan’s daughter, against a SFIO probe into its affairs.

The CM’s daughter T Veena owns the company.

The opposition Congress and BJP in Kerala welcomed the court order against Exologic Solutions, which moved the court against the probe by the Serious Fraud Investigation Office (SFIO). There was no immediate response from the ruling CPI (M) on the matter.

The Union Ministry of Corporate Affairs had asked the SFIO to investigate the company, which the firm had challenged in the HC. Justice M Nagaprasanna of the Karnataka High Court dismissed the petition. While the Congress leaders claimed the firm had moved the court as Vijayan was ‘afraid’ of the investigation, the BJP said the order proves even the court was not convinced that the probe is politically motivated as claimed by CPI(M).

Union Minister of State for External Affairs V Muraleedharan said the HC was not convinced by the arguments that the SFIO probe was politically motivated.

Union Minister of State for Electronics and Information Technology Rajeev Chandrasekhar, too welcomed the court order. An investigation was justified as the ”so-called” software firm (Exalogic) had allegedly received hundreds of crores of rupees from companies without providing any service, he said.

”I welcome the decision of Karnataka High Court to allow this investigation…into sitting CM Pinarayi Vijayan’s daughter’s company receiving mysterious payments without delivering any service,” he said.

Leader of Opposition in the State Assembly V D Satheesan said the plea in the high court indicated that the CM and his daughter were afraid of the SFIO probe. ”It also shows that his (CM’s) hands are not clean,” the senior Congress leader said.

Congress MLA Mathew Kuzhalnadan, who was the first to raise allegations of financial irregularities against the concerned firm, said the court order was not unexpected.

Earlier this month, the Kerala High Court had declined to stay the SFIO probe into state-run KSIDC, Exalogic and Kochi-based mines company CMRL.

A controversy erupted in Kerala after a Malayalam daily reported last year that CMRL had paid a total of Rs 1.72 crore to the chief minister’s daughter’s firm between 2017 and 2020.

The news report cited the ruling of an interim board for settlement and said that CMRL previously had an agreement with Veena’s IT firm for consultancy and software support services.

It also alleged that though no service was rendered by her firm, the amount was paid on a monthly basis ”due to her relationship with a prominent person”.

The report also cited findings by the Registrar of Companies (ROC) against her firm.

Quoting the ROC report, the Congress-led UDF opposition had claimed that offences of receiving money using false documents and without providing services have been committed by Veena’s firm. Recently, Vijayan had claimed in the state Assembly that his daughter’s IT company was set up using the money given by his wife which she had received as pension. He had insisted his hands were clean.