Kerala HC Reserves Judgment On CMRL Challenge To ED Money Laundering Probe
Court reserves judgment and directs ED to avoid coercive action until the verdict is delivered.
The Kerala High Court on Monday reserved its verdict on a petition filed by Cochin Minerals and Rutile Ltd. (CMRL) challenging the Enforcement Directorate’s (ED) money-laundering investigation in the high-profile CMRL-Exalogic case. The matter, which has attracted considerable legal and political attention in Kerala, was heard by a Division Bench comprising Justices Raja Vijayaraghavan V. and K.V. Jayakumar, who stated that the judgment would be delivered on Friday.
Pending the verdict, the court granted temporary relief to the petitioners by directing the Enforcement Directorate not to initiate any coercive action against them. The interim protection was provided after senior advocate Siddharth Luthra, appearing on behalf of CMRL, raised concerns that company officials could face undue hardship while the court was still considering the matter. The ED subsequently assured the court that no precipitative action would be taken against the appellants until the judgment is pronounced.
The Bench, however, clarified that the interim protection applies only to the petitioners before the court and does not extend to individuals or entities that are not parties to the appeal. The order provides temporary relief while allowing the legal proceedings surrounding the investigation to continue until a final determination is made by the court.
Also Read: ED Searches Nine Locations In Bengal In Sona Pappu Money Laundering Case
During the hearing, CMRL strongly challenged the basis of the ED’s investigation, arguing that the agency had initiated proceedings without the existence of a predicate or scheduled offence, which is generally required under the Prevention of Money Laundering Act (PMLA). The company contended that neither a First Information Report (FIR) nor a formal complaint was in place when the ED registered its Enforcement Case Information Report (ECIR) and began issuing summons.
The Enforcement Directorate, represented by Additional Solicitor General A.R.L. Sundaresan and Special Counsel Zoheb Hossain, defended the investigation and argued that it was empowered to seek information and conduct inquiries based on available material. The agency maintained that financial transactions between CMRL and Exalogic, along with findings emerging from investigations conducted by the Serious Fraud Investigation Office (SFIO), warranted a detailed examination under the law.
The case has assumed significant political importance due to allegations linked to transactions involving Exalogic, a company owned by Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan. Observations made during the hearing suggested that the court was reluctant to interfere with the investigation at its current stage, indicating that the agency should be allowed to complete its inquiry. The verdict expected on Friday is likely to have important legal and political implications and could shape the immediate future of the ED’s probe.
Also Read: ED Searches Nine Locations In Bengal In Sona Pappu Money Laundering Case
