Journalist MR Ajayan’s PIL cites Income Tax Board findings on financial misconduct. Though not yet admitted, the court asked the Centre for named individuals and scheduled the next hearing for 27 May
Published Apr 16, 2025 | 8:19 PM ⚊ Updated Apr 16, 2025 | 8:19 PM
Kerala High Court halts SFIO proceedings in CMRL–Exalogic case
Synopsis: In a key development in the ₹197.7 crore fraud case, the Kerala High Court has stayed proceedings on the SFIO report for two months, granting interim relief to CMRL and CM Pinarayi Vijayan’s daughter, Veena Vijayan. She is accused of receiving bogus payments through her company, Exalogic Solutions, for alleged consultancy services never actually provided
In a significant development in the ₹197.7 crore financial fraud case involving Cochin Minerals and Rutile Ltd (CMRL) and Exalogic Solutions, the Kerala High Court on Wednesday, 16 April, stayed further proceedings related to the Serious Fraud Investigation Office (SFIO) report for two months, effectively ordering a status quo.
The interim relief comes as a breather for CMRL and Kerala Chief Minister Pinarayi Vijayan’s daughter, Veena Vijayan, who is accused of receiving questionable payments through her company, Exalogic Solutions, allegedly for IT and marketing consultancy services that were never rendered.
Justice TR Ravi issued the stay order while hearing a petition filed by CMRL, challenging the Ernakulam Additional Sessions Court-VII’s decision to take cognizance of the SFIO’s complaint.
The Sessions Court had accepted the complaint and was preparing to issue notices when the High Court intervened.
The SFIO report alleges fraudulent financial transactions amounting to ₹197.7 crore by CMRL, including alleged payments to political figures to influence operations.
The complaint invokes Sections 129(7), 134(8), 447, and 448 read with Section 447 of the Companies Act, 2013.
CMRL and its General Manager (Finance), P Suresh Kumar, contested the Sessions Court’s cognizance, arguing that they were not granted a pre-cognizance hearing under Section 223(1) of the newly enacted Bharatiya Nagarik Suraksha Sanhita (BNSS), which replaced the CrPC and should apply to complaints filed post-March 2025.
Separately, the High Court on the same day issued notices to Chief Minister Vijayan, Veena Vijayan, and others on a Public Interest Litigation (PIL) seeking a CBI investigation into the alleged CMRL–Exalogic financial dealings.
Filed by journalist MR Ajayan, the PIL refers to findings by the Income Tax Interim Settlement Board, which had flagged questionable financial conduct.
While the PIL is yet to be formally admitted, the court directed the Centre to submit the list of names mentioned in the Board’s report. The matter will next be heard on 27 May.
(Edited by Ananya Rao)
