Lawyer Moves Kerala High Court Seeking Serious Fraud Investigation In Business Affairs Of CMRL

A lawyer has moved a plea before the Kerala High Court seeking a Serious Fraud Investigation in the conduct of business affairs of the Cochin Minerals and Rutile Ltd (CMRL).

CMRL is presently entangled in a slew of bribery allegations.

It is alleged that the Company indulged in corruption, and handed bribes to Veena Thaikandiyil (Veena Vijayan), daughter of Chief Minister Pinarayi Vijayan, and her company Exalogic Solutions Pvt. Ltd., as well as other public servants in order to facilitate illegal objectives. 

Justice Devan Ramachandran has sought the response of the opposite parties in the matter. 

The petitioner averred that the order issued by the Income Tax Settlement Board revealed huge corporate fraud committed in the accounts of the Company for facilitating illegal mining and illegal procurement of illuminate from Kerala coastal zones. The petitioner alleges that the said order clearly indicated an organized attempt on the part of politicians and other key managerial personnel of companies for committing corruption, and thereby causing huge public loss and ecological issues to Kerala's coastal areas.

The petitioner submitted that although he had filed a petition before the Ministry of Corporate Affairs seeking investigation by the Serious Fraud Investigation Office (SFIO), no further action had been taken against the corporate respondents. The petitioner further alleges that the delay in considering his petition could result in evidence being tampered with. 

It is such circumstances that the petitioner has approached the Court seeking it to invoke its constitutional powers read with Section 210(2) of the Companies Act, 2013 to order investigation by the SFIO into the affairs of the corporate respondents, and to direct disgorgement of all amounts siphoned off from CMRL. 

The matter has been posted for further consideration on December 21, 2023 (Thursday). 

The present plea has been moved through Advocates Mariya Rajan, Shinu J. Pillai, S. Suja, Aiswarya James, Nesmel Divan, Diya Bijoy, and Swetha Elizabeth Sabor. 

Case Title: Shone George v. Ministry of Corporate Affairs & Ors. 

Case Number: WP(C) No. 42092 of 2023