Veena appeared before ROC for hearing in 2022

Source: The New Indian Express

KOCHI : The investigation by the Registrar of Companies (ROC), Bengaluru into the alleged dubious financial deal between Exalogic Solutions, owned by Chief Minister Pinarayi Vijayan's daughter Veena T, and Cochin Minerals Rutiles Ltd (CMRL) has been going on for the past three years. The petition she filed before the Karnataka High Court revealed that Veena had appeared before the ROC once for personal hearing.

The probe was launched in 2021, and Veena appeared before the ROC on July 22, 2022, the petition said. On February 9, 2021, the ROC issued an order imposing a penalty of Rs 1 lakh each on Exalogic Solutions and director Veena for alleged violations of Section 12 of the Companies Act. Subsequently, on April 11, 2021, Veena filed an appeal before the regional director, southeast region, Ministry of Corporate Affairs, Hyderabad. Then the penalties were reduced to Rs 20,000 each, on August 19, 2021.

Despite providing relevant documents and participating in personal hearing, the ROC issued a show cause notice on August 11, 2023, claiming related party transaction in the light of the fact that the Kerala State Industrial Development Corporation (KSIDC) owns 13.4% shareholding in CMRL, and that the KSIDC acted allegedly at the directions of the chief minister, who is the father of the director of Exalogic. The ROC further sought details of transactions in respect of the service agreement with CMRL, failing which the company would be liable for prosecution under section 447 and section 448 of the Companies Act, said Veena's petition which is with TNIE.