Bengaluru: The Karnataka High Court on Friday dismissed a petition challenging investigation against a firm owned by Kerala Chief Minister Pinarayi Vijayan's daughter Veena.
The Ministry of Corporate Affairs had ordered Serious Fraud Investigation Officer (SFIO) to initiate an investigation into Exalogic Solutions Private Ltd. Following which, the firm had filed a petition in the high court challenging the Ministry's order.
A bench headed by Justice M Nagaprasanna dismissed the petition challenging the Ministry's instruction to the SFIO to investigate the affairs of the company. The verdict in this regard was given today.
The high court completed the hearing of the case on February 12 but had reserved its judgement for today. After its previous hearing, the court had verbally asked the SFIO not to take any coercive action against the firm till the verdict was pronounced. It had also directed the Exalogic Solutions Private Ltd to provide SFIO the documents that it had sought.
An Income Tax report revealed that Cochin Minerals and Rutile Ltd (CMRL) had paid Rs 1.72 crore to Exalogic Solutions Private Ltd over three years since 2017 for availing software consultancy services but no services were provided.
The Exalogic Solutions Private Ltd had argued in court that since a probe was already underway under section 210 of the Companies Act, SFIO cannot initiate a parallel probe under section 212. However, the opposing counsel stated that two investigations would be conducted in a parallel manner with the previous case details being handed over to the SFIO.
It was further stated that the Rs 1.72 crore was part of Rs 153 crore that CMRL had paid to political functionaries.
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