5-Day Relief For Kerala Firm, Probe Against P Vijayan's Daughter To Continue

The Kerala High Court on Monday reserved its verdict on a plea filed by Cochin Minerals and Rutile Limited (CMRL) seeking to halt an Enforcement Directorate (ED) investigation against the company, granting it temporary relief until June 5.

A division bench comprising Justices Raja Vijayaraghavan V and K V Jayakumar directed the probe agency ED not to take any fresh action against CMRL until the court pronounces its verdict on Friday.

However, the court made it clear that the interim protection applies only to the company. Proceedings against other accused in the case, including Veena Thaikkandiyil, daughter of former Kerala Chief Minister Pinarayi Vijayan, may continue.

The company has been under the probe agency's scanner over allegations that it made illegal payments to Exalogic Solutions, an IT company owned by Veena Thaikkandiyil.

The company approached the High Court in 2024 seeking to quash the ED investigation.

On May 26, a single judge dismissed the petition, observing that the challenge had been made at a premature stage. The court also noted that the Serious Fraud Investigation Office (SFIO) had filed a complaint against CMRL under provisions of the Companies Act, offences that can serve as predicate offences under the Prevention of Money Laundering Act.

CMRL subsequently challenged the order before a division bench.

The appeal came a day after the ED carried out searches at the residence of former Chief Minister Pinarayi Vijayan and members of his family.

Appearing for CMRL, Senior Advocate Sidharth Luthra argued that the ED lacked jurisdiction to initiate proceedings in the absence of an FIR relating to the underlying offence. The ED opposed the plea.

Additional Solicitor General A R L Sundaresan submitted that the agency is not required to wait for a pre-registered FIR before initiating action under the Prevention of Money Laundering Act. He argued that the summons issued by the agency was intended to gather material and assess whether further investigation was warranted.

Special Counsel Zoheb Hossain also informed the court that the original summons issued in April 2024, which had formed the basis of CMRL's challenge, was no longer operative due to the passage of time.

After hearing both sides, the division bench reserved its verdict and posted the matter for pronouncement on June 5.