CMRL-Exalogic case: HC orders Kerala Police to file FIR on ED’s recommendation

The Kerala High Court ordered an FIR and full investigation into alleged financial dealings between CMRL and Exalogic Solutions, involving Pinarayi Vijayan’s family. The ruling follows an Enforcement Directorate probe, but registration of an FIR does not establish guilt

Kochi: In a major setback to CPI(M) leader and former Kerala Chief Minister Pinarayi Vijayan, the Kerala High Court on Friday ordered the registration of an FIR and a full investigation into the alleged financial dealings between Cochin Minerals and Rutile Ltd (CMRL) and Exalogic Solutions.

The single bench of Justice A Badharudeen ruled that there was no need for another preliminary inquiry into the material provided by the Enforcement Directorate (ED). The order clears the way for the state’s Vigilance and Anti-Corruption Bureau (VACB) Special Investigation Team (SIT) to register a case against Vijayan, his son-in-law and CPI(M) legislator PA Mohammed Riyas, his daughter Veena and others.

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The verdict follows a petition filed by public activist K.M. Shahjahan, who challenged the delay in registering a case despite the ED forwarding its findings to the State Police Chief.

The ED had told the court that its investigation under the Prevention of Money Laundering Act (PMLA) had uncovered material indicating possible offences under the Prevention of Corruption Act and other laws. It maintained that the information had been forwarded after a preliminary examination and that the state police could not justify conducting another preliminary inquiry.

The state government, however, had argued that a corruption case could not be registered solely on the basis of diary entries. The court had questioned this position, asking whether statements recorded during the investigation were not available as evidence.

The ED also pointed out that the time limit fixed for the preliminary inquiry had expired. The ruling is politically significant as it brings a CPI(M) Politburo member from Kerala into the direct ambit of a criminal investigation arising from findings made during an ED probe. However, the registration of an FIR does not establish guilt, and the allegations will have to be investigated.

The case centres on alleged payments by CMRL to Exalogic, a company associated with Veena. The ED’s findings were forwarded to the State Police Chief on September 7, seeking registration of a separate case to investigate possible offences under the Prevention of Corruption Act.

The state government subsequently ordered a preliminary inquiry by a Crime Branch SIT instead of immediately registering an FIR. Shahjahan, a former secretary to veteran CPI(M) leader VS Achuthanandan, approached the High Court seeking action on the ED’s communication.

He has been a vocal critic of Vijayan since he was ousted from the CPI(M). He was also arrested following a protest outside the state police headquarters during Vijayan’s tenure as Chief Minister.

The court’s decision also gives the VD Satheesan-led government legal backing for proceeding on the basis of the ED’s findings, avoiding a situation in which a direct government decision to register a case could have triggered allegations of political collusion between Congress and the BJP.

The BJP had repeatedly accused the CPI(M) and Congress of being hand in glove over the delay. It remains to be seen whether Vijayan, the state government or any other party will challenge the single-bench order before a division bench of the High Court.

The CPI(M) has said it will deal with this issue both legally and politically. Next week, the CPI(M) is organising a seminar on the EC’s ‘high-handedness’, and will bring in high-profile individuals from the Delhi unit of AAP and other parties.