BENGALURU: Karnataka high court dismissed on Friday a petition by Exalogic Solutions Pvt Ltd challenging a Serious Fraud Investigation Office order seeking to probe the company. Veena Vijayan, daughter of Kerala chief minister Pinarayi Vijayan, is the sole director in the single-person software firm.
SFIO had sought a probe on Jan 31 this year under Section 212 of the Companies Act.Justice M Nagaprasanna, who had reserved his verdict on Feb 12, said his order will be available on Saturday. The petitioner had claimed there was no serious fraud.
The company also argued that an inquiry had already been ordered by ministry of corporate affairs under Sec 210 of the same act and, therefore, there was no scope for a parallel probe. It also claimed that the Companies Act does not contemplate any interim status report and, as such, entrusting the case to SFIO based on an interim status report was flawed. The petitioner company had also stated that that the inquiry under Section 210 could continue.
According to them, Rs 1.7 crore received from Cochin Minerals and Rutiles Ltd was for providing software services and the same was being disputed by authorities citing lack of supporting documents.
On the other hand, the ministry of corporate affairs claimed that thorough perusal of the income tax interim settlement order found that the income tax department had cited illegal payments of Rs 135 crore to various political functionaries of Kerala and certain other entities, including the petitioner, by CMRL.
SFIO had sought a probe on Jan 31 this year under Section 212 of the Companies Act.Justice M Nagaprasanna, who had reserved his verdict on Feb 12, said his order will be available on Saturday. The petitioner had claimed there was no serious fraud.
The company also argued that an inquiry had already been ordered by ministry of corporate affairs under Sec 210 of the same act and, therefore, there was no scope for a parallel probe. It also claimed that the Companies Act does not contemplate any interim status report and, as such, entrusting the case to SFIO based on an interim status report was flawed. The petitioner company had also stated that that the inquiry under Section 210 could continue.
According to them, Rs 1.7 crore received from Cochin Minerals and Rutiles Ltd was for providing software services and the same was being disputed by authorities citing lack of supporting documents.
On the other hand, the ministry of corporate affairs claimed that thorough perusal of the income tax interim settlement order found that the income tax department had cited illegal payments of Rs 135 crore to various political functionaries of Kerala and certain other entities, including the petitioner, by CMRL.