[Kerala gold smuggling] State turned against us after role of CM's personal secretary unearthed: ED to Supreme Court

The Enforcement Directorate (ED) has told the Supreme Court that the Kerala government turned against the Central government agency in the gold smuggling case after the involvement of the former principal secretary to Chief Minister (CM) Pinarayi Vijayan came to light..In a rejoinder affidavit filed by the ED before the apex court, the agency said that though the CM himself had initially written to the Prime Minister seeking a fair probe, the State machinery turned against the ED once the role of CM's former personal secretary M Sivasankar was unearthed."Even though a letter was sent by the CM of Kerala to the PM, when the investigation progressed and the role of his own then Principal Secretary was detected, the State Machinery turned against ED and registered false cases by influencing the accused and making efforts to derail the investigation and trial. One of the key accused, who was then the Principal Secretary, is continuing in a key high ranking position in the Government of Kerala even today," the rejoinder said. The rejoinder was filed in a plea moved by the ED seeking transfer the trial in the 2020 gold smuggling case in which one Swapna Suresh is the prime accused, from Kerala to Karnataka.The plea moved by the ED alleged that the accused are being intimidated and influenced though threats by Senior Officials of the Kerala Police and the State government at the behest of M Sivasankar, who was also a former principal to Chief Minister Pinarayi Vijayan.The ED claimed that the same is being done in order to derail the trial and thereby, protect certain powerful government officials who are purportedly involved in the case.The Kerala government had opposed the same and filed an impleadment application.The Supreme Court had earlier this month issued notice to the Kerala government and allowed its impleadment..The ED in its rejoinder contended that the Kerala government is resorting to double standards as one hand it is opposing transfer of trial to Karnataka citing independence of judiciary and on the other hand it is and attributing motives to the statement given before the Magistrate by accused Swapna Suresh.The rejoinder further highlighted the Kerala government's contention in the impleadment application that Suresh's statement had the potential to cause 'widespread riots' in the State. "It is therefore evident from the pleading of the State of Kerala in its impleadment application itself that the atmosphere in the State of Kerala is so charged in relation to this case that a free, fair, tranquil and independent trial free from external and extraneous influence would be almost impossible. This clearly establishes the case of the ED to seek a transfer of the trial out of Kerala. Therefore, the objection by State of Kerala ... is wholly unwarranted," the affidavit said.The ED further argued that there is no legal provision prohibiting transfer of PMLA proceedings even in cases where proceedings under the scheduled offence had not been transferred..The ED in its rejoinder also pointed out that false cases were registered against an investigating officer examining an audio clip in relation to the case.The Kerala High Court finally quashed the complaint." ... the state machinery with the help of the state police fabricated false materials against the IO and registered 02 false cases for intimidating the I.O. with the intention of derailing the ongoing investigation and delay the trial process."The State machinery has not provided any effective assistance to the agency and has only impeded the proceedings, the ED further alleged."Besides letters written to cover-up and give the appearance of genuineness, the State machinery has not provided any effective assistance and has only been misused in order to interfere with and impede proceedings under the PMLA. Multiple attempts were made by the misuse of state machinery to tamper and obstruct the investigation by ED.".The gold smuggling case dates back to July 2020, when pursuant to investigations conducted by various agencies into money laundering, illegal financial transactions and massive gold smuggling through diplomatic channels, suspected offenders were arrested and interrogated in Kerala.The National Investigation Agency (NIA) filed a charge-sheet against 20 persons accused in the case, including Sarith PS and Swapna Suresh, under various sections of the Unlawful Activities (Prevention) Act.The offences registered by the NIA and Customs are scheduled offences under the Prevention of Money Laundering Act (PMLA).The case is currently being tried by the Special PMLA Court Ernakulam where, in December 2020, a subsequent prosecution complaint was filed arraigning as the fourth accused, M Sivasankar who was an IAS officer posted in the State at the time the alleged gold smuggling was carried out.