Thiruvananthapuram: The Serious Fraud Investigation Office (SFIO) is probing the Cochin Minerals and Rutile Limited's (CMRL) misuse of the government approval to private sector units (PSU's) to mine beach mineral sand from Alappuzha's Thottappally. It was alleged that CMRL made crores of profit through such deals.
The government has permitted sand mining to the PSU's Kerala Minerals and Metals Limited (KMML) and Indian Rare Earths Limited (IREL). The GST's e-Way Bills, however, revealed that KMRL received the sand from IREL.
The KMML has the technology to produce synthetic rutile (beneficiated ilmenite) by separating iron from ilmenite. Documents, however, revealed that the KMML procured tonnes of synthetic rutile from CMRL between 2018 and 2019. The mining at Thottappally commenced in 2018.
The SFIO is expanding its probe based on the statement of the Income-Tax Department's Interim Settlement Board. The Board stated that the procurement of mineral sand mined by public sector enterprises involved the exchange of hefty bribes at the top level.
Even as the government maintained that CMRL was not permitted to mine sand from Thottappally, the complainants provided the Ministry of Corporate Affairs documents proving the involvement of the Aluva-based company.
The complainants further explained the reasons for the CMRL helping the now-defunct Bengaluru-based Exalogic Solutions, an IT service provider, owned by Chief Minister Pinarayi Vijayan's daughter Veena Thaikandiyil.
The e-Way bills disclosed that KMML had purchased synthetic rutile from CMRL since August 2018. The first load was despatched on August 27, and 10 such consignments were shipped to KMML in three days.
The bills also revealed that 45 loads were despatched in September, eight shipments in October, another 23 in March 2019, 35 in April, three in May, and 55 loads in June.
Each load was priced at Rs 27 lakh. However, in some cases, Rs 5 lakh was mentioned as the cost per load in the e-Way bills. The bills revealed that the deal between KMML and CMRL ran into crores of rupees.
Incidentally, responding to a question in the State Assembly on January 30 this year, Industries Minister P Rajeeve said KMML was not purchasing synthetic rutile from CMRL. The minister, however, did not mention the purchases made in 2018 and 2019.
Import from Japan stopped
The e-Way bills further disclosed that CMRL had been importing mineral sand from Japan till the mining started at Thottappally in 2018. The bills also divulged that CMRL is still being provided with the sand since IREL has the permit to mine sand from Kollam and other places. Additionally, the import, too, was resumed. The mineral sand found on Kerala beaches is in high demand.