The Kerala High Court asked whether the Kerala State Industrial Development Corporation (KSIDC), which had a 13.41% stake in Cochin Minerals and Rutile Ltd (CMRL) and a director nominee in the company, was aware of the controversial ₹135 crore spending made by CMRL, which has come under the investigation of the Serious Fraud Investigation Office (SFIO).
Justice Devan Ramachandran raised the question while considering a plea of the KSIDC challenging the SFIO investigation against it.
The court said it wished to see KSIDC, a government company, come clean on the issue. If the company has a case that the CMRL has kept it in the dark regarding the controversial payments, it’s a serious issue. “Is it not worrying you that your director was kept in the dark regarding the payments of ₹135 crore?” the court asked the counsel.
The court told the Corporation counsel that it would not allow any witch hunt in the case.
The counsel for the Corporation said there was no allegation against the KSIDC regarding the payments and the controversial deals. The CMRL and Exalogic Solutions Private Limited were being probed under Section 212 of the Companies Act following the revelations in the award of the Interim Board Settlement of the Income Tax department. The SFIO probe against KSIDC has hit the company’s credentials. The corporation has nothing to hide in the case, the counsel argued.
The Corporation also opposed the plea of BJP leader Shone George to implead in the case.
The court has posted the case for March 12.
