Despite oral assurance of SFIO to court, complaint filed against CMRL: Delhi HC notes

The Delhi High Court on Wednesday noted that despite an oral assurance of the Centre, a complaint was filed by the Serious Fraud Investigation Office against Cochin Minerals and Rutiles Limited. The high court made the observation while hearing a plea by Cochin Minerals and Rutiles Limited (CMRL) challenging the investigation by SFIO into the affairs of CMRL and Exalogic Solutions Private Limited, owned by Kerala Chief Minister Pinarayi Vijayan's daughter T Veena.

Justice Subramonium Prasad noted that a complaint was filed by the SFIO despite an oral assurance given by the Centre in the court that while the investigation will continue, no complaint (chargesheet) will be filed during pendency of the petition.

Initially, the matter was heard by Justice Prasad when the oral assurance was given by the Centre's counsel. Thereafter, following the change of roster it was listed before another judge who had reserved the order in the matter.


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Following the transfer of the judge, it was listed before Justice Girish Kathpalia where the CMRL's counsel had claimed that there was an oral understanding between both the sides that the complaint shall not be filed till disposal of the petition, though investigation may continue. However, this was denied by the Centre's counsel.

Justice Kathpalia had then placed the matter before Justice Prasad on being informed that the oral understanding was arrived before the latter.

During the day's hearing, Justice Prasad orally remarked that the Supreme Court has advised that such oral understandings must be put in writing but sometimes courts take the word of the lawyers.

He said he "candidly remembers" there was a clear oral understanding between the parties and an assurance was given "for sure" that no complaint will be filed pending the petition even though the probe may continue.

"The complaint has been temporarily stayed by the (Kerala) High Court. My difficulty is, why was the complaint filed when an understanding was given to this court that the investigation may continue but no complaint will be filed pending this petition?" Justice Prasad asked Additional Solicitor General Chetan Sharma, who was representing the Centre.

"I can only record that the complaint was filed contrary to an oral assurance given to the court. I can send it back to the roster bench. That is the only purport the matter was sent to this court," the judge said.

"With this clarification, the matter is sent back to the roster bench. Subject to orders of the Chief Justice, list the matter before the roster bench," Justice Prasad said.

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On April 16, the Kerala High Court had ordered a two-month status quo in the SFIO case allegedly involving Veena. The case is pending in a sessions court in Kochi.

Kerala High Court's order was passed on a plea by CMRL challenging the sessions court's decision to take cognisance of the SFIO complaint against it.

The SFIO, in April, had filed a chargesheet in the case against CMRL and various others, including Veena and her now-defunct IT firm Exalogic, in connection with an alleged "illegal payment" scandal.

The reported SFIO action came days after the Kerala High Court dismissed a plea by Congress MLA Mathew Kuzhalnadan seeking a vigilance probe against Vijayan over the alleged financial transactions between private mining company CMRL and Exalogic.

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According to the reports, the SFIO investigation has uncovered a Rs 182 crore "financial fraud" within the mining company, in which several others are also accused.

It stated that the fraud was carried out by inflating non-existent expenses and creating fake bills.

The SFIO investigation reportedly found that Veena had allegedly received Rs 2.7 crore from the private mining company without providing any services, an allegation denied by Vijayan at a press conference.