BENGALURU: The Karnataka High Court has held that the growth of financial crimes with the advancement of technology is a challenge to the country's economy and that there is nothing wrong with the Serious Fraud Investigation Office (SFIO) continuing its probe against Exalogic Solutions. A copy of the judgment passed by a bench of Justice M Nagaprasanna on Friday was released today.

The judgment stated that SFIO investigation is appropriate to find out the complex nature of the transactions and the role of the persons involved in them.

The High Court said that the action of handing over the probe to SFIO under Section 212 while the investigation of the Deputy Registrar of Companies was progressing was essential to find out if fraud was committed. The court rejected Exalogic's argument that the investigation should be handed over to another agency only after the report of the investigation under Section 210 came out.

Handing over the probe to SFIO under Section 212 does not take away the right of the complainant. The powers of the SFIO are statutory. Inspectors appointed by the Deputy Registrar of Companies have found that the inquiry should be handed over. Had the probe been entrusted to any other outside agency, it would have been a completely different situation, the judgment said.

The Additional Solicitor General, appearing for SFIO, pointed out that it was a major concern that in addition to the Rs 1.72 crores paid to Exalogic, Rs 135 crores were transferred to political entities without any documents. The court upheld this. The court also pointed out that the matter found by the Income Tax Settlement Board directly affects the public interest. Exalogic argued that it was not a public interest case.