Company Owned By Kerala CM's Daughter Being Probed Under Companies Act, Centre Informs Kerala High Court

The Ministry of Corporate Affairs informed the Kerala High Court that the company owned by the daughter of Kerala Chief Minister Pinarayi Vijayan is under investigation.

The counsel appearing for the Central Government orally told the Court that an order has been issued under Section 210 of the Companies Act 2013 to investigate the affairs of Exalogic Solutions Ltd, an IT company owned by Veena Thaikkandiyil.

Taking note of the submission, a single bench of Justice Devan Ramachandran directed that a copy of the order initiating inquiry against the company must be produced before the Court by January 19.

The Court also asked the Centre to inform if any further action by the Serious Fraud Investigation Office (SFIO) was ordered or found warranted against the company. The matter will be next heard on January 24.

The Court was hearing a writ petition filed by lawyer Shone George seeking action against Exalogic Solutions, which came under a controversy following reports of payment of Rs 1.72 crore by Cochin Minerals and Rutile Ltd to Exalogic Solutions over three years since 2017. Based on an order passed by the Income Tax Interim Board of Settlement, which suggested that the amount was paid by CMRL to Exalogic without availing any services, allegations surfaced that the kickbacks were routed to the company of CM's daughter under the guise of consideration for IT services. In this backdrop, the petitioner approached the High Court seeking enquiry against the company.

According to Section 210, if the Central Government is of the opinion that an investigation into the affairs of a company is necessary in public interest, such an investigation can be ordered.

Click here to read/download Order