The Centre has informed the Delhi High court that the mining company ,the Cochin Minerals and Rutile Ltd (CMRL), had involved in corruption amounting to Rs 185 crore in the monthly pay-off case.

The Centre and the Income Tax Department presented their arguments in the Delhi High Court concerning the financial dealings between Exalogic Solutions, the firm owned by Veena Vijayan, daughter of Kerala Chief Minister Pinarayi Vijayan, and Cochin Minerals and Rutile Limited (CMRL).

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The Centre also informed the High Court that CMRL engaged in corruption beyond imagination by misusing a corporate entity.

The Centre government argued that the claim that no further investigation should be pursued, based on the Income Tax Interim Settlement Board’s (ITISB’s)order, is not valid. Since the Kerala State Industrial Development Corporation (KSIDC) holds a stake in CMRL, the case falls under public interest. The Income Tax Department pointed out that the argument against further action, based on the ITISB’s order, won’t stand, and legal action can still be taken.

The Centre and the Income Tax Department reportedely stated that CMRL inflated expenses to account for illicit funds.

Both the Centre and the Income Tax Department informed the court that corruption poses a serious threat to the country’s financial security. The Centre and the Income Tax Department also informed the court that CMRL inflated expenses to account for illicit funds.

The findings of the investigation by the Serious Fraud Investigation Office (SFIO) in the case were also submitted to the Delhi High Court by the Centre.

The CMRL approached the Delhi High Court questioning the SFIO investigation on its transactions . The bench led by Justice Chandra Dhari Singh heard the arguments in the case in the last week of December.The court directed all parties involved in the CMRL petition to submit their written arguments within a week.

Two petitions were previously filed—one in the Kerala High Court and the other in the Bengaluru High Court—challenging the SFIO investigation into the CMRL-Exalogic transactions. However, both courts dismissed the petitions.

The Ministry of Corporate Affairs on 31 January 2024 issued an order handing over the probe into the affairs of Exalogic Solutions, the firm owned by Chief Minister Pinarayi Vijayan’s daughter ,Veena Vijayan , as well as Cochin Minerals and Rutile Ltd (CMRL) and Kerala State Industrial Development Corporation Industrial( KSIDC) to the Serious Fraud Investigation Office (SFIO) .A six-member team is authorised to probe the matter, with Deputy Director M Arun Prasad as the investigating officer.

The Income Tax Interim Settlement Board(ITISB) has found that Rs 1.72 crore was given to Veena Vijayan’s firm Exalogic Solutions by the CMRL company without rendering any services.