The Registrar of Companies (ROC), Kochi, opposed the plea of the Kerala State Industrial Development Corporation (KSIDC) that no public interest was involved in the investigation of the Serious Fraud Investigation Office (SFIO) against the Corporation in its transactions with Cochin Minerals and Rutile Limited (CMRL).
The KSIDC is a public company owned by the State government. The company failed to clarify the allegations raised against it by a complainant, Shone George. The SFIO investigation becomes relevant considering the “opaqueness and the murkiness in the matter,” which was underscored by a Report of the ROC, Bengaluru, said an affidavit filed before the Kerala High Court the other day.
Mr. George had complained that KSIDC was the second largest individual shareholder with a 13.4% stake in CMRL. He had also contended that a nominee of KSIDC was always there on the board of CMRL and any misappropriation of funds in CMRL amounted to the looting of public exchequer causing impact over the general industrial development of the State of Kerala.
Though the corporation was offered an opportunity to provide a point-to-point clarification on the allegations, it came with a reply bereft of details. Hence, it cannot be said that no public interest was invoked, according to the ROC.
