Bengaluru/Thiruvananthapuram, Feb 16 : The Karnataka High Court on Friday refused to stay the Serious Fraud Investigation Office (SFIO) probe into Veena Vijayan's IT firm Exalogic.

The Karnataka High Court's order is a massive setback to Kerala Chief Minister Pinarayi Vijayan as his daughter Veena Vijayan is the sole director of Exalogic.

The Karnataka High Court came out with a single line order stating that the SFIO probe can go forward and added that the full order would be put out on Saturday.

Last week Exalogic had approached the Karnataka High Court seeking a stay on the ongoing probe by the SFIO.

The court had stated then that it would come out with its order soon, but until then no arrests should be made.

The SFIO is acting on the findings of the preliminary probe into the company conducted by the Registrar of Companies (ROC).

Prior to the ROC investigation, this issue was first raised by Congress MLA Mathew Kuzhalnadan on the basis of a media report, quoting an Income Tax official as saying that Exalogic had received Rs 1.72 crore from the mining company CMRL, in which the Kerala State Industrial Development Corporation (KSIDC) has around 13 per cent stake.

The SFIO has already taken statements from CMRL and KSIDC officials and now with the court turning down Veena's plea, all eyes are on when she will appear before the SFIO.

Reacting to the verdict, Kuzhalnadan said ideally Veena should have approached the Kerala High Court as she is the sole director of the firm but for some reason she went to Karnataka.

'More details will be known once the full order comes out. The political narrative by Vijayan and the CPI-M that this is nothing but political witch hunting should be amended now as a probe by SFIO is a very serious thing,' he said.

Meanwhile with the Lok Sabha polls around the corner this is going to be a campaign point for the Opposition Congress and the BJP, and hence Vijayan and the CPI-M will ensure that Exalogic moves the Supreme Court against the Karnataka High Court's directive.

/IANS