Exalogic probe: No stay in investigation against KSIDC

Kochi: The Kerala High Court refused to stay the probe by the Directorate of Enforcement (ED) into state-PSU KSIDC in connection with the financial dealings with the company owned by Chief Minister Pinarayi Vijayan's daughter Veena T.

The company had moved the HC seeking a stay. When the case came up for hearing the court asked whether it was hiding anything regarding the probe. It also asked why should the PSU have a problem in verifying records. 

Though Kerala State Industrial Development Corporation (KSIDC)'s counsel argued that there was nothing to hide, but including it in a case involving two private companies was not legal, the court refused to stay the probe.

Justice Devan Ramachandran said that KSIDC's argument would be considered when the petitions related to Exalogic and CMRL are considered on February 12. The court took the case when the Serious Fraud Investigation Office (SFIO) team reached the KSIDC headquarters for inspection.

On January 31, the Central government decided to hand over the investigation against the Exalogic company to the SFIO. The fact that CMRL also has a KSIDC representative on its board of directors brought the PSU under the purview of investigation.