CMRL files appeal before Kerala High Court to quash ED probe

Cochin Minerals and Rutile Limited (CMRL) has moved the Kerala High Court challenging a recent single-judge decision which refused to quash the Enforcement Directorate's (ED's) investigation into its activities [M/S Cochin Minerals and Rutile Limited & Ors. v. Directorate of Enforcement]..The appeal comes close on the heels of multiple raids conducted by the ED at the residence of former Chief Minister Pinarayi Vijayan and his family members, among others.The raids were conducted on the very next day after a single-judge Bench of the High Court comprising Justice TR Ravi delivered his verdict on a petition 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 petition had sought to quash the Enforcement Case Information Report (ECIR) and all proceedings initiated against them by the ED. Justice Ravi dismissed the petition noting that CMRL and its officials had filed the petition at a premature stage just after summons was issued by the ED. .The single-judge also noted that the Serious Fraud Investigation Office (SFIO) had filed a complaint against CMRL alleging commission of offences under the Companies Act which constitute scheduled offences under the PMLA.Though this development took place after the Court reserved its judgment, the same cannot be ignored, the judge said."It has necessarily to be held that the foundation of the argument of the petitioners that the summons had been issued without any scheduled offence no longer exists. It is hence not necessary to interfere with the summons at this stage on the ground that there was no complaint filed by the SFIO at the time when the summons was issued. The further contention that the power of the respondent under the PMLA are dependent on the final report of the SFIO under Section 212 also cannot be countenanced. As already held, the issuance of summons was only for the purpose of investigation and does not even require the registration of an FIR," the singe-judge's order had stated. .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. The key allegation was that CMRL had made illegal payments of large sums to Exalogic Solutions Pvt. Ltd., an IT firm owned by Veena Thaikkandiyil, the daughter of former Chief Minister Pinarayi Vijayan. Multiple petitions for vigilance probes into the allegations were rejected by vigilance courts and later the High Court. However, apart from the ED, the matter is being probed by the Serious Fraud Investigation Office (SFIO) as well..Meanwhile CMRL and its officials moved the High Court with the petition which Justice Ravi dismissed earlier this week.CMRL and its officials have now challenged the dismissal of their petition before a Division Bench of the High Court.The appeal contends that since the SFIO is already investigating the matter, a parallel investigation by the ED would be improper. The appeal will likely be heard by a Division Bench in the coming week. .CMRL and its officials are being represented by advocates M Gopikrishnan Nambiar, K John Mathai, Joson Manavalan, Kuryan Thomas, Paulose C Abraham, and Raja Kannan.