Kochi: The Kerala High Court on Wednesday ordered the maintenance of status quo for two months regarding the report filed by the Serious Fraud Investigation Office (SFIO) against Cochin Minerals and Rutile Limited (CMRL). The SFIO report accuses CMRL of financial fraud amounting to several crores.

Justice TR Ravi issued the order in response to a petition filed by CMRL, challenging the Special Court's decision to take cognizance of the SFIO's investigation report. The matter will be posted for further hearing after the court's vacation.

The SFIO’s report alleges that CMRL committed a fraud of ₹197.7 crore, including payments made to Veena Thaikandiyil, the daughter of the Kerala Chief Minister, her company Exalogic Solutions, and several political figures. The report claims these payments were made to certain political functionaries to ensure the smooth functioning of the company. It further alleges that payments were made under the pretense of IT and marketing consultancy services to Veena Thaikandiyil and her company.

Based on the SFIO report, the Ernakulam Sessions Court had earlier taken cognizance of the matter, bringing charges under various sections of the Companies Act, 2013, including Sections 129(7), 134(8), and 447.

CMRL and its General Manager (Finance), P Suresh Kumar, challenged the Special Court’s order, arguing that they were not given an opportunity for a pre-cognizance hearing as required under Section 223(1) of the BNSS. They contended that since the SFIO's complaint was filed in March-April 2025, the provisions of BNSS should apply.

Appearing for the respondent authorities, ASG ARL Sundaresan argued that as the investigation was still pending when BNSS came into effect on July 1, 2024, the provisions of the CrPC continued to apply. The Special Court had previously regarded the SFIO report as a police report under Section 173 of the CrPC, not as a complaint.

The petitioners, however, contended that under Sections 212(6) and 436(2) of the Companies Act, the SFIO's report should be treated as a complaint.

The Kerala High Court’s ruling has temporarily halted further proceedings, with the matter set for hearing after the court's vacation.
(With LiveLaw inputs.)