In a startling revelation, the Registrar of Companies (RoC) has unearthed a misappropriation of Rs 103 crore in the accounts of Cochin Minerals and Rutiles Limited (CMRL), a controversial black soil mining company located near Kochi. The discrepancies came to light during an examination by RoC, which forms part of its response to CMRL’s petition before the Delhi High Court seeking to halt the inquiry.
According to the RoC report, the misappropriation spans the period from 2012 to 2019, with substantial evidence backing their findings. RoC has accused CMRL of inflating expenses through fabricated transactions, indicating potential financial irregularities within the company.
Meanwhile, the Kerala High Court dismissed a petition filed by BJP leader Adv. Shaun George, seeking an investigation by the Serious Fraud Investigation Office (SFIO) into alleged mysterious transactions and a nexus between Exalogic and CMRL. Interestingly, the Ministry of Corporate Affairs had already ordered an SFIO inquiry on January 31, even as Shaun George’s petition was under consideration by the High Court.
Adding another layer of complexity to the issue, the Kerala State Industrial Development Corporation (KSIDC) has moved the Kerala High Court to challenge the SFIO inquiry into their activities related to dealings between CMRL and Exalogic. Notably, Exalogic is owned by Veena Vijayan, the daughter of Kerala Chief Minister Pinarayi Vijayan. The High Court is set to consider the petition on July 14.
KSIDC, established in 1961, is the premier agency of the Government of Kerala tasked with promoting, facilitating, and financing large and medium-scale industries in the state. The corporation holds a significant stake of 13.45% in CMRL, prompting scrutiny into its dealings with Exalogic.
The controversy surrounding CMRL escalated in recent months following revelations that Veena Vijayan’s Exalogic allegedly received monthly payments totaling Rs 1.72 crore from CMRL without providing any services. Senior officials of CMRL disclosed this information, raising concerns about possible financial impropriety within the company.
The Kerala High Court, in a previous ruling, emphasised that the SFIO’s investigation would not only cover the Rs 1.72 crore transactions between Exalogic Solutions and CMRL but also probe into the alleged gifting of Rs 135 crore by CMRL to various political leaders, with reports suggesting even the media sector received a share.
This latest development underscores the ongoing turmoil within Kerala’s political and corporate landscape under the Left Democratic Front (LDF) regime led by the Communist Party of India (Marxist) [CPM]. The series of investigations and legal battles surrounding CMRL and its affiliates have brought to light allegations of financial irregularities and potential corruption, raising questions about governance and transparency under the current administration.
