By South Matters Political Desk | Kerala Politics
The Kerala High Court has allowed the Enforcement Directorate (ED) to continue its investigation into the alleged financial dealings between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions, a company linked to Pinarayi Vijayan’s daughter, Veena Vijayan.
A Division Bench comprising Justices Raja Vijayaraghavan V and KV Jayakumar dismissed CMRL’s appeal challenging the ED’s investigation under the Prevention of Money Laundering Act (PMLA). The court upheld an earlier single-judge order that had refused to interfere with the probe.
Court Rejects CMRL’s Arguments
CMRL argued that the ED could not initiate proceedings without the registration of a scheduled offence, also known as a predicate offence. The company further sought the quashing of the Enforcement Case Information Report (ECIR), which forms the basis of the ED investigation.
However, the High Court rejected these arguments. The Bench observed that the registration of a scheduled offence is necessary only for criminal prosecution under the PMLA and not for the agency’s civil powers, including inquiry and attachment proceedings.
The court also clarified that an ECIR is not a statutory document. Therefore, its existence or absence does not affect the ED’s authority to initiate civil action under the law.
What Is the CMRL Controversy?
CMRL, a Kerala-based public limited company engaged in manufacturing synthetic rutile and industrial chemicals, has been under scrutiny over allegations that it made payments to Exalogic Solutions Pvt Ltd.
The issue first gained prominence after findings by the Serious Fraud Investigation Office (SFIO), which reportedly examined transactions between the two entities. Authorities are investigating whether these transactions violated provisions of the Companies Act and whether they qualify as scheduled offences under the PMLA.
ED Investigation to Continue
The High Court’s ruling removes a major legal hurdle for the ED and allows the agency to continue its inquiry into the alleged transactions.
The judgment is likely to have political significance in Kerala, where opposition parties have repeatedly raised questions regarding the controversy. Meanwhile, the investigation remains ongoing, and no final conclusions have been reached regarding the allegations.
The case is expected to remain under close public and political scrutiny as both the ED and SFIO continue their respective investigations.