Setback for Veena Vijayan; Karnataka HC dismisses plea seeking stay on SFIO probe against Exalogic

In a major setback for Veena Vijayan, daughter of Kerala Chief Minister, the Karnataka HC rejected her company Exalogic Solutions' petition seeking a stay on the SFIO probe.

Bengaluru: In a major setback for Kerala Chief Minister's daughter Veena Vijayan, the Karnataka High Court on Friday (Feb 16) rejected a petition filed by her firm Exalogic Solutions, seeking a stay on the SFIO probe. The Karnataka HC ordered that the SFIO probe into the Exalogic-CMRL transactions could continue.

On February 12, arguments were held in the court for about one and a half hours. Arvind Duttar, appearing for Exalogic, argued that they have fully cooperated with the ROC under Rule 210 of the Companies Law. Yet Duttar had argued that it was not clear on what basis the SFIO announced the inquiry under Rule 212 of the same Act and it was not legal. However, Additional Solicitor General Kullur Arvind Kamath, who appeared for the SFIO, stated that it was clear from the preliminary investigation that serious financial crimes had been committed in the dealings of CMRL.

There is also evidence that Rs 1.72 crore was transferred to Veena Vijayan's Exalogic without rendering any services.

Earlier, the Karnataka High Court had instructed the investigating authorities to hold off on making any arrests in the matter until it rendered a decision on Exalogic's request for a stay of the Serious Fraud Investigation Office's probe (SFIO). Additionally, the court had ordered Exalogic to provide all the documentation needed for the SFIO. Veena is also required to respond to the SFIO notice.