Rallying behind its state secretary Kodieryi Balakrishnan a day after the allegations against his son Binoy surfaced, the CPI-M state unit and the state secretariat in separate statements claimed the charges were "baseless lie" and part of attacks by "anti-CPIM Malayalam media barons".
According to a complaint by the Dubai-based JAAS Tourism company, Binoy, elder son of Balakrishnan, had allegedly cheated the firm of Rs 13 crore.
The state secretariat, which met here, said: "Allegations against Binoy, who is residing in Dubai since 2003, are baseless...Binoy himself had clarified neither any case was pending against him in Dubai nor he faced any travel ban."
The allegations had been levelled against Balakrishnan and the CPI-M with 'ulterior' motives by hiding facts, it said.
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It was a "political conspiracy" to use the financial dispute between two persons if any as a stick to beat the CPI-M, the statement said.
The CPI-M, heading the ruling LDF, also claimed the Dubai police today gave a "clean clearance certificate" stating its central department of criminal investigation "certifies that the above mentioned individual (Binoy) is of good conduct and behaviour until the issuance date of the certificate (today)."
"No complaint has been received by the government in this regard. The government is not ready for any probe based on motivated allegations," the chief minister said.
The day also saw the state BJP approaching the Enforcement Directorate (ED) seeking a probe into the alleged illegal financial transactions.
The CPI(M) state unit, in its facebook post, claimed the charges were part of "usual attack" made on Marxist party at a time when its district conferences, ahead of the state conference, were going on.
The party facebook page also carried a copy of the "police clearance certificate", which said it has been issued as per the individual's request.
In the assembly, Vijayan said Binoy had been working abroad for the past 15 years and had clarified no case was pending against him.
On similar allegations against Sreejit, the son of LDF independent MLA Vijayan Pillai, the Chief Minister said an FIR had been registered and law will take its course.
The government wanted to hide something which was why it was afraid of an inquiry, he charged.
He reminded the ruling members that the CPI(M) was a party which had dismissed its former Rajya Sabha MP and SFI all India president Ritabrata Banerjee over using 'luxurious' articles like Iphone and montblanc pen violating party line.
Chennithala also shot of a letter to the Chief Minister asking him to register a case under the Prevention of Money Laundering Act against Binoy and Sreejit as they had allegedly cheated foreign companies and illegally amassed wealth.
CPI(M) polit bureau member S Ramachandaran Pillai said the allegations were a civil dispute and it should be settled in court and the party cannot intervene.
Corruption and misuse of power cannot be alleged in this matter, he added.
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