The Karnataka High Court has ruled against Exalogic Solutions Private Limited, owned by T. Veena, daughter of Kerala Chief Minister Pinarayi Vijayan, regarding the Ministry of Corporate Affairs (MCA) decision to initiate a Serious Fraud Investigation Office (SFIO) probe into the company’s affairs. Justice M. Nagaprasanna delivered the verdict on February 16, indicating that a detailed order would follow on February 17.
The court’s decision rebuffs Exalogic’s argument that the MCA’s SFIO investigation violates legal provisions, especially as an earlier probe by RoC inspectors was ongoing. The MCA justified its move citing alleged illegal payments made by Cochin Minerals and Rutile Limited (CMRL) to various entities, including Exalogic, prompting the need for a comprehensive inquiry. Despite Exalogic’s assertion of receiving payments from CMRL for software services, the MCA raised concerns over the company’s failure to produce the necessary documentation, citing input from Income Tax authorities.