Kochi High Court Greenlights SFIO Inquiry into KSIDC: Unraveling Allegations and Responsibilities

Delving into Dubious Transactions and Stakeholder Clarifications amidst Legal Proceedings

Kochi: The High Court has allowed the Serious Fraud Investigation Office (SFIO) to continue its investigation against Kerala State Industrial Development Corporation (KSIDC).  Justice Devan Ramachandran, in his ruling, stated that if CMRL had engaged in dubious transactions, KSIDC should welcome the investigation. They should try to uncover the truth rather than conceal anything. The case will be heard again on April 5th.

Allegations and Arguments Presented

KSIDC has filed a petition seeking to quash the SFIO investigation. During the court proceedings, the Ministry of Corporate Affairs stated that the investigation covers Exalogic, CMRL, and KSIDC activities.

The Center pointed out a specific transaction of Rs. 1 crore received by Exalogic company from CMRL for service charges.  Additional Solicitor General Arvind Kamath appeared for the central government. He stated that not only were these transactions under scrutiny, but they had also provided funds to political parties and individuals.

Responsibility and Clarifications

During the hearing, the centre made another point. Since KSIDC has nominee directors, they are also responsible. Additionally, KSIDC has a 13.4 per cent stake in CMRL. However, the lawyer representing KSIDC clarified their actions. They sought an explanation as soon as they became aware of the issues related to CMRL from the media. However, the court noted that a clear reply still needs to be received from KSIDC.

Perspectives and Observations

The response was unrelated to the raid by the Income Tax Department and the subsequent Interim Settlement Board proceedings. Moreover, Justice Devan Ramachandran verbally stated his view. If he were in KSIDC’s position, he would have welcomed the inquiry.

The court also made an observation. Suppose there were any irregularities concerning the company with a 13.4 per cent share. In that case, an investigation should have been requested to reveal the truth. The case was adjourned to April 5th. Senior counsel C.S. Vaidyanathan could not appear for KSIDC today.

Rohit Sharma

Rohit Sharma is a seasoned Political Journalist with a deep passion for Indian Politics. With over a decade of experience in the field, he has established himself as a trusted… More »

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button