Published Jun 05, 2026 | 11:11 AM ⚊ Updated Jun 05, 2026 | 11:11 AM
Kerala High Court. (iStock)
Synopsis: The Kerala High Court allowed the Enforcement Directorate to continue its probe into financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic, owned by T Veena, daughter of former chief minister Pinarayi Vijayan. The court dismissed the appeal filed by CMRL, which had challenged the ED investigation.
The Kerala High Court on Friday, 5 June, allowed the Enforcement Directorate (ED) to continue its probe into financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic, owned by T Veena, daughter of former chief minister Pinarayi Vijayan.
The court dismissed the appeal filed by CMRL, which had challenged the ED investigation. CMRL had argued that the ED could not initiate a money laundering investigation without a valid ECIR and sought to quash the ECIR. The company also requested time to approach the apex court, but the plea was rejected.
The court held that since ECIR is not a statutory document, the non-registration of the ECIR does not impede the commencement of civil action.
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The court pointed out that a complaint or an FIR is not necessary for the ED to initiate civil action under the Prevention of Money Laundering Act (PMLA).
“We hold that the non-registration of an FIR or non-filing of a complaint in respect of a scheduled offence will not bar the ED from initiating civil action under the PMLA. The registration of a scheduled offence is only a pre-requisite only for penal prosecution under Section 3 and not for civil action of attachment under Section 5 or the exercise of inquiry power under Section 15 of PMLA,” the court noted
With the court order, the ED can continue its investigation into the alleged financial transactions between CMRL and Exalogic Solutions. The ED’s Kochi unit will commence a crucial meeting led by ED Director Rahul Navin to discuss the agency’s next move in the case
After the verdict, the counsel appearing for the CMRL requested protection for the appellants for two weeks in order to enable them to approach the Supreme Court. However, the high court bench refused to do so.
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Apart from the ED investigation, the matter is also being examined by the Serious Fraud Investigation Office (SFIO), which had earlier filed a complaint against CMRL alleging various offences.
The case carries major political implications due to its connection with Veena T. The ED’s recent raids on properties linked to Vijayan and his family turned violent after CPI(M) cadres allegedly attacked a convoy of ED officials as it exited the Leader of Opposition’s rented house in Thiruvananthapuram.
The case is linked to the alleged monthly payment controversy involving Exalogic.
It has been alleged that CMRL had paid nearly ₹1.72 crore between 2017-18 and 2018-19 to Exalogic under agreements related to software development, management and consultancy services.
However, it was also alleged that Exalogic received the money despite not rendering any service to CMRL.
Officials said that the ongoing investigation extended beyond transactions involving Exalogic and also covered suspicious financial dealings worth ₹182 crore linked to CMRL.
(With inputs from Sreelakshmi Soman.)
