Kerala High Court rejects plea by BJP's Shone George for documents of SFIO probe against CM's daughter

The Kerala High Court on Wednesday refused to grant Bharatiya Janata Party (BJP) leader Shone George access to copies of all documents submitted by the Serious Fraud Investigation Office (SFIO) on its investigation into a corporate fraud case involving Chief Minister (CM) Pinarayi Vijayan's daughter [Shone George v. Union of India; Cochin Minerals and Rutile Ltd.(CMRL) v. State of Kerala & Anr.]..The case involves allegations of fraud linked to Cochin Minerals and Rutile Ltd (CMRL) and an IT firm owned by CM's daughter Veena Thaikandiyil.Justice VG Arun passed the order allowing the petitions filed by CMRL challenging orders of a sessions court which had allowed George access to the documents. The Court nevertheless directed the sessions court seized of the matter to reconsider George's application for the documents and pass detailed, reasoned orders on it. A detailed copy of the judgment is awaited..CMRL is a Public Limited Company incorporated in 1989 and engaged in the manufacture of value-added products such as synthetic rutile, ferrous, and ferric chloride. Controversy arose after an Income Tax report allegedly indicated that illegal payments of large sums were made by CMRL to Exalogic Solutions Pvt. Ltd., an IT firm owned by Veena Thaikkandiyil.Multiple petitions for vigilance probes into the allegations were rejected by vigilance courts and later the High Court. .In 2023, Shone George moved the High Court seeking a probe by the Serious Fraud Investigation Office (SFIO). While the matter was pending, the Central government issued an order under the Companies Act for initiating an investigation into Exalogic Solutions.After its investigation, the SFIO filed a chargesheet in which CMRL, its MD Sasidharan Kartha, Exalogic and Thaikkandiyil were named as accused, among others. The Ministry of Corporate Affairs subsequently granted sanction for initiating prosecution against the accused.The SFIO has levelled multiple charges under the Companies Act, 2013 against the accused individuals regarding payment of fraudulent expenses without any actual services rendered or costs being incurred.The most significant charge involves fraudulent payments of ₹2.7 crore made to Veena Vijayan and Exalogic Solutions Pvt Ltd, where she serves as a director.These payments, according to the SFIO, were made without any actual services being rendered.The SFIO has charged her under Section 447 of the Companies Act which deals with punishment for fraud. This provision carries stringent penalties including imprisonment up to 10 years and fine that can extend to three times the amount involved in the fraud.The chargesheet has also invoked Section 447, 448 (punishment for false statement), 129 (financial statement) and 134 (financial statement, board's report, etc) of the Companies Act against the other accused.The Additional District and Sessions Court–VII, Ernakulam took cognizance of the complaint filed by the SFIO and issued summons to the accused, including CMRL. The proceedings in the matter were stayed by the High Court via an interim order which is operational until September 2025. .Shone George subsequently moved the sessions court seeking a certified copy of SFIO investigation report and other documents associated with the probe. While the Sessions Court allowed the issuance of the investigating report, it did not give him copies of the annexed documents. This prompted George to move the High Court with the present petition seeking the documents.CMRL too moved the High Court challenging the order of the sessions court allowing George access to the SFIO report. CMRL contended that George has merely projected himself as a whistle blower to get access to the documents while his true intentions are political in nature. CMRL argued that George intends disseminate the information to the media and that allowing the same would impede the due administration of justice. .CMRL was represented by advocates Arshdeep Singh Khurana, Sulakshan VS, Himanshu Kasturi, John S Ralph, Vishnu Chandran, Ralph Reti John, Giridhar Krishna Kumar, Geethu TA, Mary Greeshma, Liz Johny, and Krishnapriya Sreekumar. George was represented by advocates Mariya Rajan, Shinu J Pillai, S Suja Ann Mariya John, and Felix Samson Varghese..Another petition filed George seeking further investigation into the allegations is currently pending before the High Court. On July 23, the Court issued notice on the matter to CMRL, Exalogic Solutions, Veena Thaikkandiyil, Sasidharan Kartha, P Suresh Kumar, KS Suresh Kumar, Saran S Kartha, KA Saghesh Kumar, Muraleekrishnan AK, Nipuna International Pvt Ltd, Sasja India Pvt Ltd, and Anil Ananda Panicker.