CPM accuses Kerala Congress MLA of tax evasion, illegally running resort

THIRUVANANTHAPURAM: The ruling CPM in Kerala on Thursday accused Congress MLA Mathew Kuzhalnadan of evading tax by undervaluing a property in the Idukki district and running a resort on a property where such commercial ventures are banned.

At a press conference in Kochi, CPM Ernakulam district secretary C R Mohanan countered Muvattupuzha MLA Kuzhalnadan's claim that the property in Idukki was a guest house. "The available evidence indicates that the building constructed on the said land was a resort. The commercial establishment has been built on land where only construction of houses is permitted by law," he said while producing documents.

The Congress state leadership has attacked the CPM for targeting Kuzhalnadan who had recently raised allegations regarding "monthly installments" received by chief minister Pinarayi Vijayan's daughter Veena T from Cochin Minerals and Rutiles Ltd (CMRL). The Congress MLA had raised the allegations based on the Income Tax Interim Settlement Board (ITISB) bench report which had stated that CMRL allegedly paid Rs 1.72 crore to Veena's company Exalogic Solutions for consultancy services that were never provided. The IT department had termed it as an illegal transaction in the guise of monthly installments over a period of three years 2017-20.

The ITISB bench had ruled that the money was given to Veena considering the relationship with a "prominent person". Veena and her firm Exalogic Solutions had entered into an agreement with the CMRL to provide IT, marketing consultancy, and software services to the latter.

However, as per the investigations carried out by the IT department, no services were reportedly provided.

The CPM had refuted the allegations of payments to the chief minister’s daughter as monthly installments. It described the transaction as a transparent deal between two companies. All transactions between them were routed through the bank, the party said.

Another allegation raised by CPM against Kuzhalnadan; the value of 55 cents of land shown as Rs 1.92 crore in revenue records. The value of the same was shown in the election affidavit as Rs 3.50 crore.

 Kuzhalnadan had countered the CPM allegation saying that it was only on the basis of one title deed whereas he had bought nearly an acre of land with three title deeds. He challenged the CPM leadership for a public debate on the allegations. Also, he dared the ruling party to bring into the public domain all documents related to the firm of the chief minister's daughter and the transactions of the company.

"I am prepared to face any inquiry. Will the chief minister and his daughter also subject themselves to a fair probe," he asked.

Meanwhile, the CPM youth wing has launched an agitation against Kuzhalnadan. The outfit will take out a protest march to his office in Muvattupuzha on Friday.