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Firm at centre of row over graft claims against Kerala CM’s daughter
BJP state chief K Surendran said it was now clear why the assembly session, which was scheduled to run till August 24, was adjourned in the name of the Puthuppally by-election
A chemical manufacturing firm’s suspicious payments to the daughter of Kerala chief minister Pinarayi Vijayan and alleged off-the-book payments in the past to certain Congress and Indian Union Muslim League (IUML) leaders have rankled both the ruling Left Democratic Front (LDF) and the opposition United Democratic Front (UDF).
The firm in question is the public-limited Cochin Minerals and Rutile Limited (CMRL) based in Kochi. The company was founded in 1989 by SN Sasidharan Kartha, who remains its managing director, with assistance from the Kerala State Industrial Development Corporation (KSIDC). As per its website, it mainly manufactures beneficiated ilmenite (also called synthetic rutile) used in pigment manufacture and as a feed stock of titanium sponge as well as ferric chloride, used as part of effluent treatment in certain chemical industries and in the manufacture of inks and pigments. The firm’s manufacturing plant is located in Edayar in Ernakulam district.
At the close of markets today, the CMRL share price was ₹226.30 -- 0.22% up from the previous close. Its annual revenue so far in 2023 was ₹444 crore with an operating expense of ₹154 crore.
On January 25, 2019, the CMRL office as well as residences of its members of board of directors were raided by income tax department officials on charges of tax evasion. The searches were conducted in 15 places including the factory in Edayar and the residence of Kartha, the managing director.
During the raid at the residence of KS Suresh Kumar, the chief financial officer (CFO) of the firm, the IT officials reportedly found notes with payments to persons with the initials PV, OC, RC, KK and IK. Kumar allegedly told the IT department that these initials refer to Pinarayi Vijayan, Oommen Chandy, Ramesh Chennithala, PK Kunjalikutty and Ibrahim Kunju. While Vijayan belongs to CPI(M), Chandy and Chennithala are from the Congress, and Kunjalikutty and Kunju belong to its ally IUML. Apart from politicians, there were also reportedly notes with payments to police officials, bureaucrats, media houses and journalists.
During questioning by IT officials, Kumar said that the payments were made to influential persons to ensure that the business ran smoothly especially as the company used ilmenite which causes environmental impact, the local media reported.
On June 12 this year, the Income Tax Interim Settlement Board ruled that the CMRL’s payments to the tune of ₹1.73 crore over three years to Veena T, the daughter of Kerala CM, and her firm Exalogica Private Limited could not be claimed as “business expenses” as the services were rendered to CMRL by the latter.
While the Opposition UDF used the I-T body order to assail the Kerala CM and the CPI(M) on Wednesday, it came under criticism for not raising the issue in the assembly on Thursday. It was construed that the UDF was silent as its own leaders were also allegedly recipients of payments by CMRL.
Leader of Opposition VD Satheesan, at a press conference in Thiruvananthapuram on Thursday, cited technical reasons for not raising the issue in the assembly on its last day.
“The allegations against CM’s daughter cannot be taken up because it relates to corruption charges. It comes under the Prevention of Corruption Act. It cannot be taken up under Rule 50-52 of the Rules of Procedure and Conduct of Business in the assembly. If we take it up, the Speaker will reject it...UDF parliamentary party decides the subjects to be taken up in the assembly, not the media,” he said.
He also said that the payments mentioned in media reports can be contributions to the party.
“Don’t political parties collect contributions from industrialists and shops? What’s wrong with that? All parties raise funds. The names of those mentioned are leaders who have sat in higher positions and have been authorised by the party to collect donations. Leaders like Oommen Chandy and Ramesh Chennithala, they were authorised by the KPCC in that period to collect donations...(Kartha) is not a person engaged in smuggling or drug trafficking. He runs a business with partnership with KSIDC. So there’s nothing wrong in collecting donations,” the Leader of Opposition said.
IUML leader Kunjalikutty said, “If contributions have been given to parties, there would be receipts and credited into accounts. There are names of leaders in this. This is from a while ago. There are names of press clubs and even journalists in it. I have not taken any money with my own hands.”
BJP state chief K Surendran said it was now clear why the assembly session, which was scheduled to run till August 24, was adjourned in the name of the Puthuppally by-election.
He said, “Pinarayi Vijayan and Satheesan came together to close the doors of the assembly in the name of Puthupally bypoll. Mr Satheesan, you were authorised by the people to do your job as leader of the opposition. Why are you shamelessly surrendering to the chief minister?”
