Thiruvananthapuram: The illegal largesse by Cochin Mineral and Rutile Ltd. (CMRL) for political and trade union leaders has come under the scanner of the Union Corporate Affairs ministry.
The ministry has issued a show cause notice to CMRL and Kerala State Industrial Development Corporation (KSIDC) on the funds transferred to the leaders.
The Interim Settlement Board (ISB) of the Income Tax department had found that CMRL had disbursed Rs 135 crore to political and trade union leaders after 2016. The ministry sought legal advice and conducted a quick probe before handing over the case to the Serious Fraud Investigation Office (SFIO).
The Companies Registrar’s notice slapped on CMRL and KSIDC asked them to respond by today if there are any reasons why the SFIO should not start a probe into the issue.
The KSIDC has also been served notice as it owns 13.4% stake in CMRL.
The move comes after CMRL shareholder Shawn George petitioned the Kerala High Court that as per the ISB’s recommendations, the case should be investigated by the Serious Fraud Investigation Office.
The 19 charges in Shawn’s petition in the Kerala High Court have also been attached to the show cause notice.
The key questions in the petition
1. Does the Rs 135 crore passed on by the CMRL to the leaders come under the Prevention of Corruption Act
2. Why was the money not transferred under section 80GGB of the Income Tax Act?
3. Why was the political leader given money directly?
4. How did the CMRL, which reported a loss of 772.44 lakh as of March 31, 2016, register a profit after tax of Rs 7,336.82 lakh on March 31, 2023?
5. Despite the Union Government banning mining by the private sector in 2019 March, how did the CMRL manage to procure so much Ilmenite?
