SFIO starts investigation at CMRL corporate office in Aluva
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Ernakulam: A team from the Serious Fraud Investigation Office (SFIO) began its probe at the corporate office of Cochin Metro Rail Ltd (CMRL) in Aluva on Monday related to the alleged money the company paid to the firm owned by Kerala Chief Minister Pinarayi Vijayan's daughter T Veena.
SFIO officials arrived at the office by 9 am and commenced detailed examining of the documents related to the company.
The probe, ordered on January 31, is led by Deputy Director Anil Prasad. CMRL Managing Director Sasidaran Kartha, along with his son, was present at the office when the SFIO officials arrived.
The Union Ministry of Corporate Affairs had issued an order handing over the case against Exalogic, the company owned by Veena, to the Serious Fraud Investigation Office (SFIO) recently.
A six-member team was subsequently appointed for the investigation and the probe is expected to be completed within eight months. The SFIO probe against Exalogic will also include the public-sector firm KSIDC.
A political storm erupted in the state after Malayala Manorama reported last year that CMRL had paid a total of Rs 1.72 crore to the chief minister's daughter 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 Kochi-based software firm Exalogic Solutions for consultancy and software support services. It also alleged that although no service was rendered by her firm, the amount was paid monthly "due to her relationship with a prominent person".
The Union Ministry of Corporate Affairs has initiated an inquiry under Section 210 of The Companies Act, as the explanation given by KSIDC regarding the financial transactions between Exalogic and CMRL was found to be unsatisfactory.