Kochi: The Serious Fraud Investigation Office (SFIO) should probe the alleged kickback of Rs 135 crore Cochin Minerals And Rutile Ltd (CMRL) had paid to senior officials and trade union leaders, legal experts opined.
The money was allegedly paid to facilitate the mining of mineral beach sand and manufacturing synthetic rutile, bypassing environmental and pollution concerns.
Agencies, including the Income Tax Interim Settlement Board, have recommended handing over the case to the SFIO. Exalogic, the firm of Veena Vijayan, Chief Minister Pinarayi Vijayan's daughter, too, is allegedly involved in the case.
The Registrar of Companies in Bengaluru had earlier recommended a probe into the case by the Enforcement Directorate or CBI- under the Prevention of Corruption Act. However, the recommendation lacked legal validity due to an earlier Supreme Court directive.
The apex court had ordered that if the SFIO takes over a case for investigation, the previous probe agencies should hand over all documents and information to the SFIO.
Additionally, no parallel probe could be carried out during the SFIO investigation.
The SFIO team should comprise the country's leading experts from banking, corporate affairs, taxes, forensic audit, information technology, and law. The SFIO functions under the direct supervision of the central Corporate Affairs Ministry.
The company affairs assistant registrars in Chennai and Bengaluru have sent notices to CMRL, Kerala State Industrial Development Corporation, and Exalogic, seeking objections, if any, to an SFIO probe. The company registrar in Kerala, too, has recommended a detailed probe into the alleged deal.
It should also be seen if CMRL's dividend has been diverted to any shell company. However, the company registrar in Kerala has not named any specific agency to probe the case.
Shell companies
Shell companies are firms that exist only on paper without any specific business or assets. They are mostly used to illegally park the assets of other companies or individuals to avoid taxes.
Shell companies often have bank accounts and investments. They are widely used for money laundering and other illegal activities.
