CMRL Exalogic case: ED tells Kerala High Court police bound to register FIR against ex-CM Pinarayi Vijayan

The Kerala High Court on Saturday said that it would examine whether the State Police can conduct a preliminary enquiry into information given by the Enforcement Directorate (ED) on the CMRL-Exalogic case, before it decides whether to register a First Information Report (FIR) in the matter [Adv KM Shajahan v State of Kerala & ors].

The CMRL-Exalogic case involves allegations of corruption against former Chief Minister Pinarayi Vijayan and his daughter T Veena. A petition has been filed before the Kerala High Court by advocate KM Shajahan questioning why no FIR has yet been filed in the matter.

The plea is tied to material allegedly shared by the ED with the Kerala police, following the ED's investigation into financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Private Limited, a company owned by T Veena, the daughter of former Chief Minister Pinarayi Vijayan.

However, instead of registering an FIR, the State constituted a Special Investigation Team (SIT), headed by Crime Branch Additional Director General of Police H Venkatesh, to conduct a preliminary enquiry.

Shajahan's plea questions this move. His plea states that the ED has unearthed material indicating the possible commission of offences under the Prevention of Corruption Act, 1988 (PC Act) and Prevention of Money Laundering Act, 2002 (PMLA), against Pinarayi Vijayan, his daughter and former minister PA Muhammed Riyas.

The ED, today supported Shajahan's plea for the registration of an FIR in the case.

"My respectful submission is it has to be registered, my lord. That is no other option," the ED's counsel told the Court.

Justice A Badharudeen, in turn, noted that the matter raises an important legal question as to whether a State agency had any discretion to decide whether or not to register an FIR in such matters.

"While hearing, a pertinent legal question was raised for consideration as to whether, when information under Section 66(2) of the PMLA Act has been passed by the Enforcement Directorate to the State Police for registering FIR for the scheduled offences found during investigation, whether the State Police has any other option other than registering the FIR, or whether the State Police still has the option to go for a preliminary inquiry before registering the FIR. This question to be heard in detail," the Court said.

The Court has also directed the ED to submit the materials it had shared with the State police in a sealed cover. The matter is listed next on September 29.

Shajahan, in his plea, has sought the registration of an FIR against those allegedly involved in the CMRL-Exalogic case, and a transfer of the investigation to the Vigilance and Anti-Corruption Bureau (VACB).

He has also sought directions to the State Police and the Vigilance Director to act on complaints submitted by him in the matter on September 22.

The ED's standing counsel, Jaishankar V Nair, today told the Court that the ED had come across several transactions that required a probe by the State Police or another competent agency.

"We came across materials indicating possible offences under the PC Act," he said.

Advocate General Jaju Babu, appearing for the State, meanwhile raised a preliminary objection to the maintainability of the petition. He argued that although the petitioner portrayed the proceeding as being in public interest, it had been filed as a private writ petition.

AG Babu also maintained that receipt of information from ED did not take away the State agency's power to independently examine whether the materials disclosed any offence warranting the registration of an FIR.

[Live Coverage]