The Kerala High Court on Tuesday orally observed that the Kerala State Industrial Development Corporation (KSIDC), which holds 13.4% shares in Cochin Minerals and Rutile Limited (CMRL) and has a nominee director on the board of the company, should have sought an investigation when the allegation of illegal financial transaction between CMRL and Exalogic Solutions Private Limited, an IT company owned by T. Veena, daughter of Chief Minister Pinarayi Vijayan and others had surfaced.
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Justice Devan Ramachandran made the observation when a writ petition filed by the KSIDC challenging the investigation by the Serious Fraud Investigation Office (SFIO) into the affairs of KSIDC as part of its probe into the affairs of CMRL, KSIDC, and Exalogic Solutions Private Limited, came up for hearing.
The court, which had gone through the communications sent by the KSIDC to the CMRL, orally observed that the KSIDC should have sought an investigation into the allegation that ₹135 crore was siphoned off if it was a responsible public sector undertaking. The court noted that KSIDC had sought an explanation from the CMRL on the alleged financial deals after it had filed the writ petition, that too after a gap of eight months. The court observed that it was baffling for the corporation to contend that it was in the dark about the unauthorised pay outs.
The court said that the SFIO can proceed with its investigation.
Additional Solicitor General of India Arvind Kamath, appearing for SFIO, submitted that the investigation was on and if the corporation cooperated with the investigation, no coercive action would be taken against it. The SFIO had sought certain correspondences the KSIDC had with the CMRL. The SFIO would file a report before the Union government once the investigation was completed.