The Kerala High Court has deferred its decision on the petition filed by Cochin Minerals and Rutile Ltd. (CMRL) challenging the Enforcement Directorate’s money-laundering probe in the CMRL-Exalogic case. The verdict is scheduled to be announced on Friday. The court has instructed the Enforcement Directorate not to take any coercive action against the appellants until the judgment is delivered.
Senior Supreme Court advocate Siddharth Luthra, representing CMRL, raised concerns about potential harassment faced by company officials during the ongoing proceedings. The court has obtained an assurance from the Enforcement Directorate that no immediate action will be taken against the appellants until the final verdict is reached. However, this protection only applies to the petitioners involved in the appeal.
CMRL strongly contested the basis of the Enforcement Directorate’s investigation, arguing that it was initiated without a prior predicate or scheduled offense, which is necessary under the Prevention of Money Laundering Act (PMLA). The company highlighted the absence of an FIR or formal complaint when the ED commenced its probe. On the other hand, the ED, represented by Additional Solicitor General A.R.L. Sundaresan and Special Counsel Zoheb Hossain, defended its authority to conduct inquiries based on available information.
The court expressed reluctance to intervene in the ongoing investigation, questioning the necessity of halting the ED’s inquiry prematurely. It emphasized that CMRL could demonstrate its innocence by providing the required documentation. The case has garnered significant attention due to allegations of financial transactions involving Exalogic, a company owned by Veena Vijayan, the daughter of former Chief Minister Pinarayi Vijayan. The High Court’s ruling on Friday is anticipated to shape the future course of the ED’s investigation, with potential legal and political ramifications.
