Kochi: In a major setback to Cochin Minerals and Rutile Limited (CMRL), the Division Bench of the Kerala High Court on Thursday dismissed the company’s appeal challenging the ED’s money laundering investigation and refused its plea to keep the order in abeyance for two weeks to facilitate an appeal before the Supreme Court.
The verdict clears the way for the Enforcement Directorate (ED) to intensify its probe into the alleged financial transactions between CMRL and Exalogic Solutions, the IT firm owned by former Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan, which had come under scrutiny following Serious Fraud Investigation Office (SFIO) findings that payments were made without any corresponding services being rendered.
CMRL’s appeal petition said that the ED had crossed the jurisdictional limit and hence does not enjoy the power to dispatch summons.
CMRL also argued that issues relating to Income Tax do not come under the purview of the ED. CMRL further complained that the High Court Single Bench did not give them the opportunity to provide a proper response and that it was a violation of natural justice.
However, the Central Government’s counsel, who appeared for the ED, stated that whether any other agency is investigating the same case does not have any bearing on the ED.
SFIO started enquiries in January 2024, but the ED started the investigation in March. The counsel made it clear that the ED has absolute authority to collect evidence in connection with money laundering activities.
Now, the High Court order has come in favour of the continuation of the ED investigation, and the organisation can expedite its operations.
The agency is likely to go ahead with summoning Veena Vijayan. Earlier, the ED had stated that follow-up actions would be devised after studying the court order. Earlier, the Court had made it clear that the ED was free to interrogate all accused except CMRL.
The ED took up the case in the wake of the SFIO findings that Exalogic, the IT firm owned by Veena Vijayan, had received money from CMRL without rendering any service.
Accordingly, the agency had issued summons and carried out raids. However, CMRL moved the Court, stating that it was being harassed and persecuted in the name of interrogation. CMRL argued that the ED did not have any evidence to carry out interrogation against them. However, despite the arguments of CMRL, the Single Bench ordered that the ED could go ahead with the investigation.
In connection with the case, the prosecution filed a complaint on April 3, 2025, before the Ernakulam Additional Sessions Court. They have been accused of offences under the Prevention of Money Laundering Act, 2002.
The latest Division Bench order is a shock not only for Veena Vijayan but also for Pinarayi Vijayan and his CPM party. The raids of May 27 had already sent shockwaves through CPM leaders.
