KOCHI: The Kerala High Court on Wednesday expressed dissatisfaction with the Union government for failing to apprise the court of the status of the Serious Fraud Investigation Office (SFIO) probe into the alleged illegal financial transactions involving Cochin Minerals and Rutile Ltd (CMRL), Chief Minister Pinarayi Vijayan’s daughter Veena T's software firm and some politicians.
The court conveyed its displeasure during the hearing of a petition filed by Kerala Janapaksham leader Shone George seeking an SFIO probe into the affairs of CMRL and Veena's company. Shone George is a lawyer and son of veteran politician P C George.
“We cannot have our name tarnished by saying that the company’s affairs are held in such a manner. The memo on the proceedings initiated by the Union Ministry of Corporate Affairs filed by the counsel did not reflect any decision of the Centre with respect to the investigation by the SFIO,” said Justice Devan Ramachandran.
The court pointed out that the Union government counsel did not communicate about the decision taken on the SFIO probe as directed, instead an investigation has been ordered under Section 210(1)(c) of the Companies Act (in public interest, it may order an investigation into the affairs of the company).
The court emphasised its dissatisfaction with the lack of response to its previous order, stating, “I am not happy with that, and I am not going to allow my orders to be treated lightly.”
R V Sreejith, representing the Centre, requested a two-week extension to seek instructions from the ministry on whether an SFIO probe has been ordered or found warranted.
He clarified that the initiation of an inquiry under Section 210 did not prevent an SFIO probe under Section 212 (investigation into affairs of company by Serious Fraud Investigation Office) if deemed necessary.
Sreejith said the current order for a probe under Section 210 was not influenced by any court directives.
He told the court that the Ministry of Corporate Affairs can order an SFIO probe if it was of the opinion that the same was required.
However, the counsel for CMRL and the Kerala State Industrial Development Corporation (KSIDC) opposed the plea for an SFIO probe, arguing that the Union government had already produced the order for an investigation under Section 210, as requested by the court.
Meanwhile, the Cochin Minerals and Rutile Ltd -- whose payments to Veena's firm for services has snowballed into a political storm in the state -- told the court that since the ministry has ordered a probe under section 210 of the Companies Act, the relief sought in the petition has been satisfied.
A controversy erupted in Kerala after a Malayalam daily reported last year that CMRL had paid a total of Rs 1.72 crore to the chief minister's daughter between 2017 and 2020.
The news report cited the ruling of an interim board for settlement and said that CMRL previously had an agreement with Veena's IT firm for consultancy and software support services.
It also alleged that although no service was rendered by her firm, the amount was paid on a monthly basis "due to her relationship with a prominent person".
(With additional inputs from PTI)
