Kochi, Mar 12 (IANS): The Kerala High Court on Tuesday told the Kerala State Industrial Development Corporation that it is a responsible public sector undertaking and must refute all allegations of siphoning off crores of money.

The court was referring to the probe by the Serious Fraud Investigation Office (SFIO) into the actions of Exalogic, an IT firm owned by Chief Minister Pinarayi Vijayan's daughter Veena Vijayan, which, according to an Income Settlement Board report, had received Rs 1.72 crore from mining company CMRL, in which the KSIDC has around 13 per cent stake.

Incidentally, the SFIO took statements from the CMRL and the KSIDC and it was then the KSIDC approached the court seeking a stay into the ongoing SFIO probe against it.

Justice Devan Ramachandran orally said: "It is to protect your (KSIDC) credibility that I am saying this…You should co-operate with them, actually. It is left to you to take a call, I am not saying you should, I am saying normally, you should have been happier that your name is cleared because you have a nominee director on the board of CMRL."

Additional Solicitor General Arvind Kamath, instructed by Central government counsel R.V. Sreejith, submitted that the SFIO has the power to investigate this and also pointed out that the investigation conducted by it will help the KSIDC to know if the CMRL had carried out illegal transactions without its knowledge.

Following this, the court posted for further hearing on April 5.

The SFIO is acting on the findings of the preliminary probe into the company conducted by the Registrar of Companies (ROC). Last month, Veena Vijayan failed to get a respite from the Karnataka High Court, which turned down her request to stay the SFIO probe into her IT firm.