Kerala HC Dismisses CMRL Appeal Against ED Probe

Kochi : The Kerala High Court on Friday dismissed CMRL’s appeal against the single judge’s order allowing the ED to proceed with the money laundering probe into the mining company’s financial dealings with former Kerala Chief Minister Pinarayi Vijayan’s daughter Veena T. The Division Bench, comprising Justice Raja Vijayaraghavan and Justice KV Jayakumar, upheld the single judge order dated May 26, saying there was no reason to interfere with this order.

The Supreme Court also rejected a plea by Cochin Minerals and Rutile Ltd (CMRL)’s lawyer seeking protection of the company for two weeks so that he could file an appeal in the Supreme Court.

Dismissing the company’s objection, the bench said: “Failure to register an FIR or file a complaint in respect of a scheduled offense does not prevent the ED from initiating civil proceedings under the Prevention of Money Laundering Act (PMLA).

“Registration of a scheduled offense is only a prerequisite for criminal prosecution and not for civil proceedings or the exercise of investigative powers under the Act.”

The court also rejected the company’s request to cancel the Enforcement Case Information Report (ECIR) recorded by the Enforcement Directorate (ED).

The single judge verdict on May 26 had held that the ED could continue its investigation under the PMLA even before the Serious Fraud Investigation Bureau files a formal FIR or final report.

Following the single judge order, ED conducted searches at the homes of former CM Vijayan and others on May 27 as part of the investigation into the CMRL money laundering case involving his daughter.

The case stems from Income Tax searches carried out in January 2019 at the company’s offices and the residences of its senior executives. The case was later investigated by the SFIO following a complaint filed by BJP leader Shone George.