Cochin Minerals and Rutile Limited Faces Legal Scrutiny Over Alleged Financial Misconduct

The Enforcement Directorate has expanded its probe into Cochin Minerals and Rutile Limited over allegations of fictitious expenses linked to former Kerala CM's daughter. The investigation reveals inflated expenditures and illegal payments, highlighting the financial impact on shareholders and potential legal violations under the Companies Act and Indian Penal Code.

The Enforcement Directorate (ED) has intensified its investigation into Cochin Minerals and Rutile Limited (CMRL), following claims of fabricated expenditures totaling Rs 1.72 crores for ostensible software services by the daughter of former Kerala Chief Minister Pinarayi Vijayan. Reports suggest no actual services were provided.

The Kerala High Court has been briefed about discoveries from a January 2019 search by Cochin Income Tax Department, alleging CMRL amplified its costs by logging phony cash outlays for 'transportation and sludge handling,' aggregating to Rs 133.82 crores over several years.

The Income Tax Department's findings outlined how such 'inflated expenditures facilitated the creation of unaccounted cash,' later used for illegal disbursements to politicians, media, and officials. CMRL, partially owned by public investors and the Kerala State Industrial Development Corporation, now faces allegations of misappropriation affecting shareholder profits.