Kerala HC gives free hand to ED in CMRL case linked to Pinarayi Vijayan’s daughter

Kochi, May 26 (IANS) In a significant development in the controversial CMRL financial transactions case that had rocked Kerala politics during the tenure of former Chief Minister Pinarayi Vijayan, the Kerala High Court on Tuesday refused to quash the Enforcement Directorate’s investigation into Cochin Minerals and Rutile Limited ( CMRL), dealing a major setback to the company and its officials.

Justice T.R. Ravi dismissed a batch of petitions filed by the company and four of its senior officials challenging the ED’s probe and the Enforcement Case Information Report (ECIR) registered by the central agency.

Though the case does not directly involve Vijayan, the controversy had acquired massive political significance after allegations surfaced that CMRL had made questionable payments to Exalogic Solutions Pvt. Ltd., the IT firm owned by Veena Thaikkandiyil, daughter of Pinarayi Vijayan.

The allegations regarding monthly payments made by CMRL to Exalogic without corresponding services had triggered a fierce political storm in Kerala, with the Opposition repeatedly targeting Vijayan and accusing his family of benefiting from dubious financial dealings.

The issue had remained one of the most politically sensitive controversies faced by the Vijayan government.

CMRL and its officials had approached the High Court seeking to quash the ED proceedings, arguing that the agency lacked jurisdiction as no scheduled offence under the Prevention of Money Laundering Act (PMLA) was made out in the case.

The petitioners included CMRL Managing Director S.N. Sasidharan Kartha, Chief Financial Officer K.S. Suresh Kumar, and Senior Manager N.C. Chandrashekharan and Senior Officer Anju Rachael Kuruvila.

During earlier proceedings, three officials who appeared before the ED alleged illegal detention during questioning, prompting the High Court in June 2024 to direct the agency to preserve CCTV visuals of the interrogation.

Apart from the ED probe, the case is also being investigated by the Serious Fraud Investigation Office.

While vigilance courts and the High Court had earlier rejected pleas seeking vigilance investigations into the allegations, Tuesday’s order effectively clears the way for the ED to continue its money laundering probe in one of Kerala’s most politically explosive corporate controversies.

–IANS

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