CMRL illegally diverted Rs 185 cr to politicians and Entities: Centre tells Delhi HC
The submission was made during a hearing on a petition challenging the SFIO probe into financial dealings between CMRL and Exalogic.
The submission was made during a hearing on a petition challenging the SFIO probe into financial dealings between CMRL and Exalogic.
The submission was made during a hearing on a petition challenging the SFIO probe into financial dealings between CMRL and Exalogic.
New Delhi: The Central Government has informed the Delhi High Court that an investigation by the Serious Fraud Investigation Office (SFIO) revealed that Cochin Minerals and Rutile Limited (CMRL) unauthorisedly distributed Rs 185 crore to political leaders and institutions.
The submission was made during a hearing on a petition challenging the SFIO probe into financial dealings between CMRL and Exalogic, a company operated by Kerala Chief Minister Pinarayi Vijayan's daughter, Veena Vijayan. The hearing has concluded, and the court has reserved its judgment.
In its submission, the Union Ministry of Corporate Affairs emphasised that such corrupt practices could undermine the country's financial structure. It alleged that CMRL inflated expenses under categories such as waste removal and traffic management, using these as a cover to divert Rs 185 crore to various individuals and entities.
The Ministry also dismissed CMRL's argument that the SFIO investigation lacked public interest. Instead, it clarified that the Kerala State Industrial Development Corporation (KSIDC), a state government-owned entity, holds a 13.4% stake in CMRL, making the case a matter of significant public concern. The Ministry further asserted that the SFIO has the authority to initiate suo moto investigations in cases involving public interest.
Centre counters immunity claims
The Central Government also countered CMRL's contention that reopening an investigation already settled by the Income Tax Interim Settlement Board violated protocol. It noted that, since 2007, the law explicitly prevents the Board from granting immunity in cases relating to Central laws, including the Indian Penal Code. Moreover, the provisions of the Income Tax Act do not bar the Board from sharing information with other investigative agencies.
These submissions were made in response to a petition filed by CMRL challenging the SFIO investigation. During the hearing, the Delhi High Court had directed the Centre and the Income Tax Department to submit written arguments. The details of these submissions have now been made public.