Thiruvananthapuram: The financial dealings between Exalogic Solutions, the firm owned by Chief Minister Pinarayi Vijayan’s daughter Veena, and the Cochin Minerals and Rutile Limited (CMRL), a black soil mining company, have been primarily found to be fraudulent, the Registrar of Companies (RoC) said in its report.
“A detailed probe is needed to dig out all the facts. The financial offence is serious in nature. The Kochi RoC branch should closely scrutinize the entire figures of both Exalogic Solutions and CMRL,” the report prepared by the Bengaluru RoC recommended.
The RoC also called for a detailed investigation against CMRL after considering its involvement in a wide range of industrial activities as well as the distribution of money to political parties and certain others.
Offences under the Company Act
Exalogic Solutions submitted a false affidavit along with the application to freeze its operations- Fine and imprisonment can be slapped under Sections 447, 448, and 449.
The Chief Minister’s daughter entered a deal with a company that has KSIDC (Kerala State Industrial Development Corporation) as the director and is controlled by the Chief Minister. Immunity of the ‘related party’ was utilised for this deal. CMRL may be slapped with a fine of Rs 5 lakh under Section 188 for covering up this fact.
Exalogic Solutions violated the condition (Section 455) that the annual return should be filed 30 days after a company’s functioning is frozen. Since six months have elapsed, the company has to pay 18 times the fine amount.
The audit report of Exalogic Solutions was submitted without the sign of the auditor. A fine of Rs 25,000 can be imposed under Section 136.
