HC advises KSIDC to cooperate with probe in CMRL graft case

Kochi: The High Court here on Tuesday suggested the Kerala State Industrial Development Corporation Ltd (KSIDC) to cooperate with the investigation conducted by the Serious Fraud Investigation Office (SFIO) in the alleged CMRL bribery case. 

Justice Devan Ramachandran orally observed that it would be better if the KSIDC as a responsible public sector undertaking cooperated with the investigation to get rid of all allegations of siphoning off crores of money.

The court was hearing a reply filed by the Centre, Director General of Corporate Affairs, Registrar of Companies and SFIO stating that KSIDC could not escape from the probe as it is a government agency and would lose reputation before the public if done so.

The court had earlier directed the KSIDC to establish its credibility to remove it from the investigation in the alleged bribery case, involving the CMRL and the Exalogic Solutions, an IT firm owned by Chief Minister Pinarayi Vijayan’s daughter.

Meanwhile, the KSIDC informed the court that an explanation has been sought from the CMRL over the alleged illegal money transactions, to which the court asked if the same was sought after filing a writ in the High Court.

The Centre pointed out at the court that the KSIDC has a nominee director on the Board of CMRL and hence it has clear knowledge of its financial transactions. The Centre also sought to know how at such a juncture, the KSIDC be removed from the purview of SFIO investigation. 

Further hearing on the plea is posted for April 5.