A controversy erupted in Kerala over “illegal” financial transactions between a private minerals company and Chief Minister Pinarayi Vijayan’s daughter T Veena and her IT firm.

A report of the Interim Board for Settlement under the Central Board of Taxes regarding a settlement application filed by Kochi-based Cochin Minerals and Rutile Limited (CMRL), and its managing director Sasidharan Kartha, details alleged payments made to politicians, political parties, police officials, media houses, journalists and others to “ensure smooth running of business”.

The report also refers to “illegal payments” to the tune of Rs 1.72 crore allegedly made to Veena T, daughter of Chief Minister Pinarayi Vijayan.

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Furthermore, the report, which refers to findings of the Income Tax Department, also mentions payments allegedly made to Vijayan, former CM and Congress leader late Oommen Chandy, senior Congress legislator Ramesh Chennithala, and Indian Union Muslim League leaders P K Kunhalikutty and V K Ibrahim Kunju, among others.

The issue came to the fore after a Malayalam daily recently reported that Cochin Minerals and Rutile Limited (CMRL) paid a total of RS 1.72 crore to the CM’s daughter during a period of three years between 2017 and 2020, PTI reported.

The newspaper report, citing the recent ruling of an Interim Board for Settlement, said that the Kochi-based company previously had an agreement with Veena’s IT firm for consultancy and software support services.

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Despite the fact that 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 said, citing the deposition of the minerals company authorities before the Income Tax Department.

As the report snowballed into a political firestorm, the BJP attacked Chief Minister Vijayan and urged him to break his silence over the allegations cropping up against his daughter.

Lashing out at the CPI(M)-led LDF and the Congress-headed UDF over the issue, BJP state Chief K Surendran said the ruling and opposition parties in Kerala are the ones who accept money from “robbers” on a monthly basis.

Not just the CM’s daughter, but the Opposition leaders also received “monthly payments” from the mining company, he said, while addressing the party’s assembly march here.

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Criticising the UDF for not raising the raging issue in the Assembly, Surendran charged that the opposition leaders in the state became the ones who extended all support to the corruption of the CM and his daughter.

Leader of Opposition in the state assembly V D Satheesan rejected the criticism, saying that even if the opposition had given a notice for adjournment over the issue, the CM would not have replied.

However, the ruling CPI(M) categorically rubbished the charges and claimed that the news report was totally baseless and that the CM’s daughter received the amount as per the legally valid contract between her IT firm and the minerals company.

“A contract between two companies is a transparent one. All the financial transactions that were part of it were done through the bank,” the party’s state secretariat said in a statement on Thursday.

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“Children of political activists also have the same right as all other citizens to take up any legitimate occupation. Veena also started a consulting firm based on this. All its operations are transparent,” the Marxist party further said.

Senior BJP leader and union minister V Muraleedharan also criticised the Congress for not raising the matter in the House, saying it was the latest example of politics of compromise between the LDF and the UDF in the state.

Whether it is the issue of corruption or religious beliefs, Vijayan is the person who takes decisions, and Satheesan obeys all his directives, he charged.

In Delhi, BJP national spokesperson Tom Vadakkan dubbed the payment made to the Kerala CM’s daughter’s company as “Veena Tax” in a statement.