NEW DELHI: In an investigation status report submitted to the Delhi High Court, the Income Tax Department has informed that the Registrar of Companies (ROC) has found irregularities of Rs 103.02 crore in the Cochin Minerals and Rutile Limited (CMRL) during the preliminary investigation conducted in the monthly quota allegation case. The Income Tax Department also clarified that it will decide whether to take prosecution action only after the preliminary investigation is completed.

The Income Tax Department submitted the report on a petition filed by CMRL seeking the cancellation of ED and SFIO investigations. The case has been adjourned to July 29.

The Registrar of Companies found that the CMRL had projected fake expenses amounting to Rs 103.02 crores in connection with mud removal and transportation expenses from the financial years 2012 to 2019. The Income Tax Department says that CMRL projected fake figures of Rs 10.60 crore in 2012-13, Rs 15.24 crore in 2014-15, Rs 21.89 crore in 2015-16, Rs 13.27 crore in 2016-17, Rs 13.03 crore in 2017-18 and Rs 11.15 crore in 2018-19. It stated that a detailed investigation is going on regarding the consumption of funds.

The Income Tax Department also demanded that the plea seeking the cancellation of the SFIO probe should be dismissed. It said that the central government ordered an SFIO probe based on serious findings. The Income Tax Department also rejected CMRL's contention that there was no need for further inquiry as the Income Tax Interim Settlement Board had settled the matter. It said that the ongoing inquiry is separate from the proceedings of the Interim Settlement Board. The SFIO investigation is independent. Interference at the investigation stage is unacceptable.