ED interrogates CMRL MD in monthly pay-off case in Kerala
The case involves the firm owned by Kerala Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan.
The Kerala High Court on Wednesday expressed displeasure with the Central government for not stating its stance on the SFIO probe into the transactions between the firm owned by Chief Minister Pinarayi Vijayan’s daughter and Kochi-based company Cochin Minerals and Rutile Ltd (CMRL).
A single bench of Justice Devan Ramachandran asked the Centre whether it intends to order a probe by the Serious Fraud Investigation Office (SFIO) into the dealings.
The petitioner, Shone George, had sought a directive from the court for a probe by the SFIO into the transactions between the CMRL and leaders of various political parties and Veena. He alleged that the inquiry by the Registrar of Companies, Bangalore was aimed at diluting the corporate fraud
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The Central government had earlier filed a memo in the court confirming that it has ordered an investigation under section 210 (investigation into affairs of company) of the Companies Act into the two companies. However, the high court sought to know its stand on Shone’s petition.
The court, on January 15, directed to “obtain specific instructions, if any further action by the SFIO has been ordered or found warranted”. The Centre’s counsel sought two weeks’ time to seek instructions from the ministry on whether an SFIO probe has been ordered or found warranted.
If an offence under section 447 of the Companies Act was revealed, no other investigation agency except the Serious Fraud Investigation office (SFIO) can conduct a probe into such offence, the petitioner said.
The Ministry of Corporate Affairs has ordered a probe against the firm Exalogic Solutions for allegedly receiving payment from Cochin Minerals and Rutile Ltd (CMRL) without providing any service.
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