CMRL case: Kerala HC allows ED probe against Veena Vijayan to continue
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Kochi: In a setback for Exalogic Solutions and its owner Veena Vijayan, the Kerala High Court on Monday refused to grant an immediate stay on the Enforcement Directorate’s investigation into the controversial CMRL–Exalogic financial transactions case, allowing the central agency to continue its probe.
The Cochin Minerals and Rutile Ltd. (CMRL) had moved the High Court seeking relief after the ED conducted raids at 10 locations last week, including the residence of former Chief Minister Pinarayi Vijayan, where his daughter Veena Vijayan resides.
The court’s refusal to halt the investigation at the preliminary stage gives the ED a significant legal advantage to proceed under the provisions of the Prevention of Money Laundering Act (PMLA).
CMRL had sought interim protection against further investigative action until its petition is finally decided. However, the court observed that there was no valid reason to stall an ongoing investigation and permitted the agency to continue its inquiry.
During the hearing, CMRL argued that the ED had exceeded its jurisdiction by initiating proceedings even before the registration of any First Information Report against the company.
It also contended that the Serious Fraud Investigation Office (SFIO) probe was initiated based on a complaint filed by a political leader.
The High Court, however, questioned why the investigation should not be allowed to proceed, observing that CMRL could present all relevant records before the authorities to prove its innocence, and that a clean chit would follow if no wrongdoing was found.
The bench also asked why the company was objecting to the production of documents related to its transactions with Exalogic.
The case originates from findings of the Income Tax Settlement Board regarding alleged payments made by CMRL to Exalogic without corresponding services being rendered.
These findings form a key part of the material relied upon by the ED in examining possible money-laundering violations.
The High Court continued detailed arguments on Monday but indicated that a final order was unlikely at this stage.
Senior Supreme Court advocate Siddharth Luthra appeared for CMRL, while the Additional Solicitor General represented the Enforcement Directorate.
With no interim relief granted, the ED is now free to intensify its investigation, including summoning and questioning individuals connected to the case.
Given the high political stakes, the case is being closely watched in both legal and political circles, with the final outcome expected to have significant implications for Kerala’s political landscape.
With IANS inputs