The court directed KSIDC to cooperate fully with the probe, without withholding any information.
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 pay-off case involving Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions, the firm owned by Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan.
A single bench of Justice Devan Ramachandran said that if CMRL has engaged in dubious transactions, the KSIDC should try to find out the truth and welcome the investigation and not hide anything. The court directed KSIDC to cooperate fully with the probe, without withholding any information. The case will again be heard on April 5. The KSIDC had approached the High Court, seeking to quash the SFIO probe against it.
Meanwhile, the Central Government has filed a reply before the Kerala High Court stating that KSIDC could not take shelter and escape from the investigation being conducted by the SFIO stating that they are a government agency.
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The Centre government informed the court that SFIO has the power to investigate into the transactions between CRML and KSIDC since the nominee director of KSDIC was present in the Board of CMRL and partaking in their business. It was also argued that the investigation conducted by the SFIO will help KSIDC to know if CMRL had carried out illegal transactions without the knowledge of KSIDC.
The Income Tax Interim Settlement Board (ITISB) had found that CMRL had disbursed Rs 135 crore to political leaders and others after 2016. The ITISB has also found that a total of Rs 1.72 crore was received by Veena Vijayan and her company Exalogic during 2017-20 from the mining company without providing any service to them.
The Ministry of Corporate Affairs on January 31 issued an order handing over the probe into the affairs of Exalogic Solutions, the firm owned by Veena Vijayan as well as CMRL and KSIDC to the SFIO. A six-member team is authorized to probe the matter with Deputy Director M Arun Prasad as the investigating officer.
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