Kerala High Court Dismisses CMRL Appeal Against ED Probe
The Kerala High Court dismissed CMRL's appeal against an ED probe into money laundering allegations involving its financial dealings with Veena T, daughter of former chief minister Pinarayi Vijayan. The court upheld that the ED can proceed without registering FIRs or complaints before filing civil actions under anti-money laundering laws.
Highlights
- •Kerala High Court rejects CMRL appeal
- •ED's right to continue probe
- •No need for registration of FIR in civil cases
- •Implications on corporate governance
Kochi: The Kerala High Court recently declined to interfere with a single-judge order that allowed the Enforcement Directorate (ED) to continue its money laundering probe against Cochin Minerals and Rutile Limited (CMRL), specifically concerning dealings with Veena T, daughter of former Chief Minister Pinarayi Vijayan. A Division Bench composed of Justices Raja Vijayaraghavan and Jayakumar upheld this decision, emphasizing that registration of an FIR or a complaint is not necessary for initiating civil actions under the Prevention of Money Laundering Act (PMLA).
This development follows a single-judge verdict from May 26, which acknowledged the ED's authority to investigate even before final reports are filed. Following this order, the ED carried out searches at the residences of the former chief minister and others on May 27 as part of its ongoing investigation.
The case originated from Income Tax inspections of CMRL's offices and residence of senior executives in January 2019. The Serious Fraud Investigation Office (SFIO) later took up the investigation after a complaint from BJP leader Shone George.
Enforcement Directorate's Probe Details
The High Court rejected CMRL's request for protection and two-week adjournment to appeal decisions before the Supreme Court, underscoring that such measures are unnecessary in civil cases. The court stated, 'Non-registration of an FIR or non-filing of a complaint will not bar the ED from initiating civil actions under PMLA.' A key point made by the bench is that registration pertains only to criminal prosecutions, not civil proceedings.
The ongoing judicial scrutiny aims to maintain transparency in economic operations and ensures robust checks on commercial activities. This incident
