Kochi, June 5 (IANS) The Kerala High Court has cleared the way for the Enforcement Directorate (ED) to proceed with its investigation into Cochin Minerals and Rutile Limited (CMRL), rejecting the company’s plea to quash the probe.
The development comes at a crucial stage with ED Director Rahul Navin reaching Kochi and preparing to hold a high-level meeting with senior officials.
A Division Bench comprising Justices Raja Vijayaraghavan V. and K.V. Jayakumar on Friday dismissed an appeal filed by CMRL challenging the earlier order of a single judge who had refused to halt the ED investigation.
The CMRL received another jolt when the court refused to give two weeks to them to approach the apex court.
The court rejected CMRL’s argument that registration of a predicate offence was mandatory for the ED to initiate proceedings. The Bench held that registration of a scheduled offence is required for criminal prosecution but is not a pre-condition for civil actions such as attachment of properties or for exercising inquiry powers under the Prevention of Money Laundering Act (PMLA).
The court also refused to quash the Enforcement Case Information Report (ECIR), observing that an ECIR is not a statutory document and that even the absence of an ECIR does not prevent the ED from initiating civil action.
The ruling has provided a major boost to the agency’s probe into CMRL, which has been under the ED scanner following allegations of financial irregularities, bribery and money laundering.
The company, based in Kerala, is engaged in the manufacture of synthetic rutile and other industrial chemicals. The investigation has gained political significance following allegations that CMRL made illegal payments to Exalogic Solutions Pvt. Ltd., an IT firm linked to Veena Thaikkandiyil, daughter of former Chief Minister Pinarayi Vijayan.
The matter is also being examined by the Serious Fraud Investigation Office (SFIO).
CMRL and four of its officials had approached the High Court seeking to terminate the ED proceedings. The single judge had earlier dismissed their petition, observing that the challenge was premature as it was filed soon after summons were issued by the agency.
The court had also taken note of an SFIO complaint against CMRL alleging offences under the Companies Act, which are included as scheduled offences under the PMLA.
Following the single judge’s order, the ED had conducted searches at the residence of Vijayan and his family members, adding further political weight to the case.
The company later filed an appeal, raising concerns over the delay in the judgment and the reliance on additional material submitted by the ED after the matter was initially reserved for orders.
Meanwhile, ED Director Rahul Navin’s arrival in Kochi has added further significance to the developments. This is the first visit of an ED Director to Kerala in nearly five years.
A review meeting of senior officials is expected shortly, with the High Court order likely to shape the agency’s next steps. The coming days are expected to be crucial as the ED evaluates further action in the case.
–IANS
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