KOCHI: The office of the Registrar of Companies (ROC) Kerala on Monday informed the High Court that misappropriation of funds in Cochin Minerals and Rutile Ltd (CMRL) is tantamount to looting of public exchequer and it will have an impact on the general industrial development of the state.
Citing the complaint filed by Shone George, the ROC pointed out that as a promoter, Kerala State Industrial Development Corporation Ltd (KSIDC) is the second largest individual shareholder holding a 13.4 per cent stake in the CMRL and a nominee of KSIDC was always there in the board of the CMRL.
Despite an opportunity provided by the office of ROC, Kerala to provide a point-to-point clarification on many allegations raised in the complaint, KSIDC came with a reply bereft of details.
The ROC filed the counter-affidavit in response to a petition filed by the KSIDC challenging the probe by the Serious Fraud Investigation Office (SFIO) into the affairs of the CMRL, KSIDC and Exalogic Solutions Private Ltd owned by CM’s daughter Veena T.
The affidavit stated that the SFIO designated six officers as inspectors to investigate the affairs of the three companies. The KSIDC has only given an acknowledgement of the letter of ROC regarding the allegations and has not countered the allegations.
The KSIDC only stated that the relationship between the corporation and the CMRL is a limited one.
Since KSIDC was not forthcoming with a detailed reply to the complaint and further based on the report of ROC, Bengaluru, it necessitated a detailed probe into the books and affairs of KSIDC. Hence, an SFIO probe was ordered, including on KSIDC.
According to the affidavit, the contention of KSIDC that as a shareholder it should not be subjected to investigation for alleged transactions between CMRL and Exlogic is also untenable since nothing prevented KSIDC from submitting details. The KSIDC has also a nominee director in the Board of CMRL and it has issued clarification notice to CMRL concerning the alleged illegal financial deal, stated the affidavit.
HC directs KSIDC to produce copy of explanation letter
The Kerala High Court on Monday asked the Kerala State Industrial Development Corporation Ltd (KSIDC) to produce documents proving it had sought an explanation from the Cochin Minerals and Rutile Limited (CMRL) about the financial transactions with Exalogic Solutions. When the petition filed by the KSIDC challenging the action of the Serious Fraud Investigation Office (SFIO) came up for hearing, KSIDC’s counsel and lawyer C S Vaidyanathan, submitted that the transactions between the CMRL and the IT company were kept in the dark. Therefore, the KSIDC sought an explanation from the company, however, the CMRL is yet to clarify. The court orally observed that it cannot take unethical actions like the one cited lightly when the country is on the path of becoming one of the greatest economies in the world. Advocate R V Sreejith, central government counsel, submitted that the culpability of KSIDC will be known only after the investigation.
CPM alleges political motive behind Exalogic row
THIRUVANANTHAPURAM : Alleging political motive behind the targeting of Exalogic Solutions, CPM state secretary M V Govindan on Monday said the party will face the case legally and politically. He said with the Lok Sabha elections approaching, attempts were being made to target the CM by raking up the issue. “There’s clear political agenda behind recent attempts to target the CM. Advocate Shaun George filed a case against Exalogic in the Kerala High Court. The demand was an investigation by the SFIO (Serious Frauds Investigation Office). Close on the heels of political leader P C George and Shaun joining BJP, the Union government announced the SFIO probe. It’s evident there’s political motive behind this,” alleged Govindan. He said more allegations will come up as the LS election is round the corner.