Kerala High Court rejects plea to quash ED probe in CMRL money laundering case linked to Pinarayi Vijayan’s daughter

The Kerala High Court on Tuesday allowed the Enforcement Directorate to continue its money laundering investigation in the controversial CMRL financial transactions case, giving a major setback to Cochin Minerals and Rutile Limited and several of its senior officials who had sought to halt the probe. The case had triggered intense political controversy in Kerala after allegations emerged over payments made to a company owned by Veena Thaikkandiyil, daughter of former Chief Minister Pinarayi Vijayan.

During the hearing, Justice T.R. Ravi dismissed a series of petitions filed by CMRL and four of its officials challenging the Enforcement Case Information Report registered by the Enforcement Directorate and questioning the agency’s authority to investigate the matter under the Prevention of Money Laundering Act.

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The ruling is being seen as a significant boost for the central agency, which has been examining financial transactions linked to the company amid allegations that monthly payments were allegedly routed to Exalogic Solutions Pvt. Ltd. without corresponding services being provided.

Although Pinarayi Vijayan is not directly named in the proceedings, the issue had become politically prominent in Kerala after Opposition parties repeatedly accused the former Chief Minister’s family of benefiting from suspicious financial arrangements involving the private firm owned by Veena Thaikkandiyil.

CMRL had argued before the High Court that the Enforcement Directorate had no legal basis to proceed with the investigation because no scheduled offence under the Prevention of Money Laundering Act was established in the case. The company sought cancellation of the ECIR along with all related proceedings initiated by the agency.

The petitions were filed by CMRL Managing Director S.N. Sasidharan Kartha, Chief Financial Officer K.S. Suresh Kumar, Senior Manager N.C. Chandrashekharan and Senior Officer Anju Rachael Kuruvila, all of whom challenged the continuation of the probe.

The matter had earlier drawn attention after three company officials alleged that they were illegally detained during questioning by the Enforcement Directorate. Following those claims, the Kerala High Court in June 2024 had directed the agency to preserve CCTV footage related to the interrogation proceedings.

Apart from the Enforcement Directorate investigation, the Serious Fraud Investigation Office is also examining aspects linked to the financial dealings under scrutiny.

Earlier attempts seeking vigilance investigations into the allegations had already failed before vigilance courts as well as the High Court. Tuesday’s verdict now removes a major legal obstacle before the Enforcement Directorate, effectively allowing the agency to continue its money laundering investigation in the politically sensitive case.