The Serious Fraud Investigation Office (SFIO) informed the Delhi High Court that the payment made by the mining company CMRL to Exalogic, a now-defunct company owned by Kerala Chief Minister Pinarayi Vijayan’s daughter, constituted corruption. It further stated that the payment was made to ensure smooth operations for CMRL.
The SFIO emphasized that the CMRL-Exalogic investigation was a matter of public interest and alleged that funds were provided to political leaders by CMRL to conceal the corruption. These statements were made during arguments in the High Court which was hearing CMRL’s petition seeking to halt the SFIO investigation into its dealings.
The controversy began when the Malayala Manorama reported on August 8, 2023, that CMRL had made a payment of Rs 1.72 crore under “bogus claims” to the chief minister’s daughter, Veena Thaikandiyil. The report was based on a verdict by the New Delhi bench of the Income Tax Interim Settlement Board.
Last week, the SFIO informed the High Court of its suspicion that CMRL had paid money to supporters of terror activities and that an investigation into the matter was ongoing. The counsel representing the Union government revealed that the SFIO had already completed its probe into Exalogic Solutions, CMRL, and the Kerala State Industrial Development Corporation (KSIDC) concerning the alleged funding scam. The investigation report has been submitted for review.
Meanwhile, the Income Tax Department informed the High Court that transferring tax-related documents in the case to the SFIO was lawful and clarified that there was no legal violation in doing so. It also noted that the Interim Settlement Board's order is not final, and any objections could be raised before the High Court.
The High Court directed all parties involved in the CMRL petition to submit their written arguments within a week. A verdict on CMRL's petition against the SFIO investigation will be delivered later.
Two petitions were previously filed—one in the Kerala High Court and the other in the Bengaluru High Court—challenging the SFIO investigation into the CMRL-Exalogic transactions. However, both courts dismissed the petitions.