Central Government accuses KSIDC of seeking forensic audit as a face-saving attempt

The Central government has accused the Kerala State Industries Development Corporation (KSIDC) of attempting to avoid investigation by the Serious Fraud Investigation Office (SFIO) through a face-saving move of seeking a forensic audit of the financial transactions of Cochin Minerals and Rutile Limited (CMRL).

In response to a petition filed by KSIDC challenging the SFIO investigation into CMRL, KSIDC, and a defunct IT company owned by Veena, daughter of Chief Minister Pinarayi Vijayan, the Registrar of Companies submitted an affidavit stating that the company cannot use the forensic audit as an excuse to escape the ongoing investigation.

The affidavit highlighted the need for KSIDC to cooperate with the SFIO investigation and pointed out the governance issues within the company. The board meeting of KSIDC had directed its Managing Director to establish proper standard operating procedures for reporting on activities and issues in assisted companies, as well as implementing a monitoring mechanism.

KSIDC, as the second largest individual shareholder in CMRL, is under scrutiny for its role in the financial transactions of the company. The Central government’s stance on the matter raises questions about transparency and accountability in the operations of state-owned corporations.

The developments in this case are likely to have far-reaching implications for the corporate governance landscape in Kerala and could potentially lead to further investigations into the financial dealings of other state-owned entities. Stay tuned for more updates on this developing story.