Monthly pay-off case: CMRL appeals to Kerala HC to quash ED probe

Cochin Minerals and Rutile Limited (CMRL) filed an appeal on Friday before a Division Bench of the Kerala High Court challenging a single-judge order which refused to quash the Enforcement Directorate’s (ED’s) investigation into the alleged monthly pay-off case involving Exalogic Solutions, a company owned by former Chief Minister Pinarayi Vijayan’s daughter Veena Vijayan.

The appeal closely follows raids conducted by the Central agency at the residences of former Chief Minister Pinarayi Vijayan and his family members.
The CMRL, in its appeal, argues that the ED’s parallel probe is legally untenable since the Serious Fraud Investigation Office (SFIO) is already conducting a detailed inquiry into the transactions.

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The company contends that the financial allegations do not attract the provisions of the Prevention of Money Laundering Act (PMLA), and that the ED lacks the necessary jurisdiction to pursue the case.
On Tuesday, the high court dismissed a batch of petitions filed by CMRL and its executives, refusing to quash the 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 T R 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.

The key allegation was that CMRL had 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 any actual services being provided by the IT firm.

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