Kerala HC: Centre Confirms No Obstacles for Serious Fraud Investigation into Company Owned by Kerala CM’s Daughter

Kerala HC Law Insider

LI Network

Published on: 26 January , 2024 at 21:48 IST

The Kerala High Court has been informed by the Central government that there are no restrictions on the Serious Fraud Investigation Office (SFIO) conducting an investigation into Exalogic Solutions, an IT company owned by Chief Minister Pinarayi Vijayan’s daughter, allegedly involved in the CMRL bribery case.

Exalogic Solutions is accused of receiving kickbacks from Cochin Minerals and Rutile Ltd. without providing any services, and a probe under Section 210(1)(c) of the Companies Act, 2013, has already been initiated against it.

Under Section 210 of the Companies Act, the Central Government has the authority to order an investigation into a company’s affairs in the public interest.

Justice Devan Ramachandran had previously inquired whether the SFIO had been directed to take any further action or found any need for action.

On Wednesday, Senior Central Government Counsel RV Sreejith requested additional time to obtain instructions on this matter. However, he emphasized that the initiation of an inquiry under Section 210 of the Companies Act would not prevent an investigation under Section 212 if deemed necessary.

This development arises from a petition filed by Advocate Shone George seeking an SFIO probe into CMRL. Although Exalogic Solutions is a party-respondent in the case, it has not yet been served a notice.

The case is scheduled for further proceedings on February 12.

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