The Kerala High Court on Monday admitted a critical appeal by Cochin Minerals and Rutile Ltd (CMRL) challenging a single-judge order that allowed the Enforcement Directorate (ED) to proceed with its money laundering investigation. The probe centers on CMRL’s financial dealings with Veena T, the daughter of former Kerala Chief Minister Pinarayi Vijayan.
A Division Bench comprising Justice Raja Vijayaraghavan and Justice K V Jayakumar heard the arguments and scheduled the matter for judgment on June 5. In a significant development, the ED assured the High Court that it would refrain from taking any “precipitative action” in connection with the investigation until the June 5 ruling is delivered.
The Core of the Legal Battle
The appeal filed by CMRL directly targets a May 26 single-judge verdict. That ruling held that the ED has the authority to advance its investigation under the Prevention of Money Laundering Act (PMLA) even in the absence of a formal FIR or final report from the Serious Fraud Investigation Office (SFIO).
In its petition to the Division Bench, CMRL argued that the single-judge’s decision caused it severe prejudice. The company pointed out a series of procedural anomalies, highlighting that the case had been reserved for orders twice—once in 2024 and again in 2025.
Furthermore, CMRL alleged a violation of the principles of natural justice. The company claimed the ED was permitted to submit additional affidavits after the case had already been reserved for orders, denying CMRL a fair opportunity to respond.
These disputed affidavits point to an SFIO complaint filed in April 2025, which alleges fraud-related offences under the Companies Act—violations that qualify as scheduled offences under the PMLA. CMRL contends that the ED cannot retrospectively use a subsequent SFIO complaint to validate a money laundering probe that was launched when no scheduled offence had been established. Consequently, CMRL is seeking to stay the May 26 order and have it set aside entirely.
Immediate Fallout and High-Profile Raids
The legal tussle has already triggered high-profile actions on the ground. Immediately following the single-judge’s ruling, the ED intensified its probe. On May 27, agency officials conducted searches at the residences of former Chief Minister Pinarayi Vijayan and several others linked to the investigation.
Prior to this appeal, CMRL had actively petitioned the High Court to quash the ED’s Enforcement Case Information Report (ECIR) and dismiss the summonses issued to its corporate executives, maintaining that the anti-money laundering agency lacked the jurisdiction to initiate the probe in the first place.
Background: From a 2019 Tax Audit to an SFIO Probe
The controversies surrounding CMRL’s financial transactions are rooted in events from over seven years ago. The matter first came to light in January 2019, when the Income Tax department conducted extensive searches at CMRL’s corporate offices and the private residences of its top brass.
The scope of the investigation widened significantly after BJP leader Shone George filed a formal complaint. This complaint triggered a subsequent investigation by the Serious Fraud Investigation Office (SFIO), ultimately paving the way for the current ED probe into the company’s financial transactions with Veena T.
With the High Court Division Bench set to deliver its judgment on June 5, both the corporate entity and the political landscape of Kerala await a decision that could redefine the boundaries of the ED’s investigative powers.
