Unveiling Financial Discrepancies: SFIO’s Verdict on CMRL

Exposing the Disparity: Uncovering Shell Companies and Money Laundering Tactics

Kochi: The Serious Fraud Investigation Office (SFIO) uncovered conclusive evidence during its second day CMRL financial scrutiny at its office in Aluva. The 12-member team, spearheaded by Arun Prasad, arrived at the office premises early in the morning. CMRL, a prominent black sand processing company, was trapped in a probing inquiry. Revealing a glaring disparity between its reported net profit and actual assets, the revelation was underscored by preliminary evidence.

Key Points:

  • SFIO’s investigation uncovered a disparity between reported net profit and actual assets.
  • Allegations of illicit financial transactions involving Veena Vijayan and her company Exalogic, amounting to Rs 1.7 crore, are under scrutiny.
  • Despite CMRL declaring a net profit of Rs 73 crore, an inspection by the Income Tax Department suggests a much higher actual profit.

Delving into Allegations: Scrutiny and Investigation

Later that afternoon, following Monday’s investigation, a smaller contingent of six officials inspected the factory. One particular area of scrutiny is the transactions involving Veena Vijayan and her company Exalogic. Allegations swirl around the illicit transfer of Rs 135 crore to political and trade union leaders and bureaucrats to sway support for black sand mining and synthetic rutile production.

Navigating the Probe: Pursuit of Truth

The ongoing investigation delves deep into CMRL’s financial records from 2016 to 2023, calculating and verifying profits and losses. Despite CMRL declaring a net profit of a mere Rs 73 crore as of March 31, 2023, an inspection by the Income Tax Department suggests a much higher actual profit. Alarmingly, only a fraction of this profit has materialized as assets within the company. SFIO’s pursuit aims to trace the elusive flow of funds and unravel the recipients, with Veena Vijayan slated for imminent questioning.

Ensuring Accountability: Collaborative Efforts

Should evidence of large-scale money laundering surface, the ED stands poised to initiate prosecution, drawing upon complaints filed by SFIO. The Central Bureau of Investigation (CBI) is poised to lend weight to this investigation. In a coordinated effort, SFIO officials visited the Income Tax Department headquarters in Ernakulam. They diligently collect evidence and scrutinize CMRL’s income tax returns submitted over time. The SFIO team, comprising officers from the Indian Corporate Law Service, underscores the meticulousness of this endeavour.

Continuing Inquiry: Sustained Efforts

On the second day of evidence collection, a contingent of six officials descended upon CMRL’s office headquarters in Aluva, signalling the steadfastness of the inquiry. Under SFIO Deputy Director M. Arun Prasad, alongside officers from the Income Tax Department and the ED, evidence collection will persist in the coming days.

Upholding Legal Integrity: Recordings and Statements

In addition to scrutinizing documents, the statements of pertinent officials undergo meticulous recording. CMRL, Kerala State Industrial Development Corporation (KSIDC), and Veena Vijayan’s IT services company Exalogic remain embroiled in the investigative whirlwind. Statements furnished to SFIO officers carry the same legal weight as those given before a Magistrate, underscoring the gravity of this unfolding saga.

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 »

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