Kochi: The Kerala High Court on Tuesday allowed the Serious Fraud Investigation Office (SFIO) to carry on with its probe against the Kerala State Industrial Development Corporation (KSIDC) in the monthly payment controversy. Justice Devan Ramachandran said if Cochin Minerals and Rutile Limited (CMRL) has engaged in dubious transactions, the KSIDC should try to find out the truth and welcome the investigation and not hide anything.
The case will be heard again on April 5. KSIDC had filed a petition seeking quashing of the SFIO probe. The Ministry of Corporate Affairs stated in the court that the investigation is focusing on the activities of CMRL, KSIDC and Exalogic, owned by Chief Minister Pinarayi Vijayan's daughter Veena Vijayan.
The Centre pointed out that more than Rs 1 crore was received from CMRL in the name of Exalogic for services provided. "CMRL is the defendant in the case. Not only these transactions, but CMRL has also shelled out funds to political parties and individuals," said Additional Solicitor General Aravind Kamat, who appeared for the Central government.
During the hearing, the Centre stated that since KSIDC has nominee directors, they too are responsible. It further said KSIDC holds a 13.4 per cent stake in CMRL. However, the lawyer appearing for KSIDC clarified that they had sought an explanation as soon as they came to know about the issues related to CMRL from the media. But the court said it did not receive a clear response on the matter then and that the clarification given was on the raids by the Income Tax Department and the Interim Settlement Board of the I-T Department. Moreover, Justice Ramachandran orally observed that the court had sought a response on this in February.
He further stated if he was in KSIDC's position, he would have welcomed the inquiry. The court observed that the KSIDC should have taken the initiative to call for a probe if it sensed any irregularity in a company it holds 13.4 per cent shares. The case was adjourned to April 5 as senior counsel C S Vaidyanathan, who was to appear for KSIDC, could not make it to court today.
