Thiruvananthapuram: The Union Ministry of Corporate Affairs has launched a quick probe into the findings of the Income Tax Interim Settlement Board (ISB) that Cochin Minerals and Rutile Ltd (CMRL) had illegally paid crores of rupees to political and trade union leaders, police and other officials.
After examining the documents and statements, ISB has identified that CMRL disbursed Rs 135 crore after 2016. With this major finding, the Serious Fraud Investigation Office (SFIO) under the Ministry of Corporate Affairs will be asked to find out to whom and for what purpose the CMRL company disbursed the amount.
After receiving legal advice, the ministry launched a quick investigation before handing over the case to SFIO.
The Bengaluru and Chennai regional directors in the office of the Director General of Corporate Affairs are tasked with the investigation. SFIO will take over the probe into the case if the Director General of Corporate Affairs reports that the documents and statements found by the ISB are factually correct.
The case is based on the documents seized from the residences of CMRL MD S N Sasidharan Kartha and key officials as well as their statements during the Income Tax raid on January 25, 2019.
Three things are mainly examined in the quick investigation:
1. Has the CMRL obtained approval for any “illegal and anti-environmental” industrial activities by paying money?
2. If the Kerala State Industrial Development Corporation (KSIDC), a state government entity, has a 13.4% stake in CMRL, will the case come under the purview of public exchequer fund misappropriation?
3. If CMRL is a listed company on the Bombay Stock Exchange, will the alleged transactions violate the rules of the Securities Exchange Board of India (SEBI) or not?
Serious Fraud Investigation Office
The Serious Fraud Investigation Office (SFIO) is an agency with judicial powers to investigate organised financial crimes in the corporate sector. It can take up cases prescribed by the Central government, the Supreme Court, and High Courts. The trial powers of SFIO cases are vested with a court in the rank of a sessions court in each state.
