Exalogic appeals order dimissing its plea to quash SFIO probe
Karnataka court had dismissed the probe in February 2024.
Karnataka court had dismissed the probe in February 2024.
Karnataka court had dismissed the probe in February 2024.
The Karnataka High Court on Monday issued notice on an appeal filed by Exalogic Solutions Private Ltd, a company in which Kerala Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan is a director, challenging the dismissal of its plea to quash a Serious Fraud Investigation Office (SFIO) probe against it.
Earlier, the Ministry of Corporate Affairs’ order for SFIO probe into the company's affairs was challenged by Exalogic before the High Court. That plea was dismissed by a single-judge bench on February 16, 2024.
Hearing the company’s appeal, a division bench comprising Chief Justice Vibhu Bakhru and Justice CM Poonacha observed that the matter raised an "interesting question" of law on whether an SFIO probe under Section 212 of the Companies Act, 2013, can be ordered before the conclusion of a preliminary investigation under Section 210.
Counsel for Exalogic sought interim protection from coercive action by the SFIO during the pendency of the appeal. The bench, however, declined to interfere, stating that at this stage, since the writ petition had already been dismissed. The court clarified that it would examine the legal question regarding the SFIO’s authority in the next stage of the hearing.
Exalogic came under scrutiny after reports surfaced that the company had received ₹1.72 crore from Cochin Minerals and Rutile Ltd (CMRL) over a three-year period starting in 2017. An order issued by the Income Tax Interim Board of Settlement indicated that the payments were made without any corresponding services being rendered. Following this, allegations emerged that the funds were routed to Veena’s company as kickbacks, disguised as payments for IT services.
(With inputs from LiveLaw)