Kerala HC refuses to quash ED probe into CMRL case involving former CM Pinarayi Vijayan’s daughter

The Kerala High Court on Tuesday dismissed a batch of petitions filed by Cochin Minerals and Rutile Limited (CMRL) and its executives, refusing to quash the Enforcement Directorate (ED) investigation into the high-profile money laundering and bribery case involving former chief minister Pinarayi Vijayan’s daughter Veena Vijayan.

A single bench of Justice TR Ravi rejected the pleas seeking to quash the Enforcement Case Information Report (ECIR) and the Central agency’s summons. After the order was pronounced, the CMRL’s counsel sought a two-week extension of the interim order passed by the Court deferring the summoning of CMRL officials. However, the Court was not inclined to allow the request.

Advertisement

The ruling effectively lifts previous procedural delays, clearing the way for the ED to resume its interrogation of CMRL officials and expand its probe

The CMRL, a public limited company based in Kerala and engaged in the manufacture of synthetic rutile and other industrial chemicals, has been under the ED’s scanner following a slew of bribery and money laundering allegations.

The key allegation was that CMRL made illegal payments of large sums to Exalogic Solutions Pvt. Ltd., an IT firm owned by Veena Vijayan, daughter of former Chief Minister Pinarayi Vijayan.
Investigations by the Income Tax Department and the Serious Fraud Investigation Office (SFIO) alleged that these funds were disbursed without the IT firm providing any actual services.
The ED’s ECIR asserts that key managerial personnel conspired to disguise bribes to public servants and influential figures as legitimate business expenses, thereby creating “proceeds of crime” under the Prevention of Money Laundering Act (PMLA).

While vigilance courts and later the High Court rejected multiple petitions for vigilance probes into the allegations, Central agencies have continued to escalate their scrutiny. Alongside the ED’s active money laundering probe, the SFIO is also investigating the matter.

The present petition was filed by CMRL and four of its officials, Senior Manager NC Chandrashekharan, Senior Officer Anju Rachael Kuruvila, Chief Financial Officer KS Suresh Kumar, and Managing Director SN Sasidharan Kartha.

The petitioners sought to quash the Enforcement Case Information Report (ECIR) and all proceedings initiated against them by the ED regarding the Central agency’s probe into CMRL’s financial transactions.

They contended that the ED lacked jurisdiction to investigate the matter as no scheduled offence under the Prevention of Money Laundering Act could be made out from the allegations.