On the other hand, the government counsel asserted that there were serious offences and public interest involved in the Exalogic case which necessitated an inquiry by a multi-disciplinary agency like the SFIO. Unlike the inspectors carrying out an inquiry under Section 210 of the Companies Act, the SFIO can seamlessly secure information from various agencies and authorities, he explained.
Exalogic’s case, he went on to submit, is tied to a revelation by the Income Tax Department that CMRL had distributed an amount of ₹135 crores to political functionaries which it later claimed were “expenses.”
Of this amount, ₹1.76 crores were paid to Exalogic, although no corresponding software services were provided, the government counsel said.
While so, a government entity known as the Kerala State Industrial Development Corporation (KSIDC) has a 13.4% stake in CMRL. CMRL itself was found to have undertaken several “shady” transactions, the Court was told. It was in such circumstances that the SFIO probe was launched, the government counsel said.
There was no need to get the concurrence of Exalogic to launch an SFIO probe against and the matter is only at a preliminary stage, the counsel added. There is no reason for the Court to interfere at this stage, he contended.
Source: Barandbench
