Kerala HC orders FIR in CMRL-Exalogic case, directs probe against Pinarayi Vijayan and others

Kochi, Kerala: The Kerala High Court has directed the registration of an FIR and an investigation under the Prevention of Corruption Act against Leader of the Opposition Pinarayi Vijayan, his daughter T Veena and her husband, MLA and former minister PA Mohammed Riyas, based on material shared by the Enforcement Directorate (ED) in the CMRL-Exalogic financial transactions case.

Justice A Badharudeen passed the order on a petition filed by advocate K M Shahjahan, who challenged the state police’s decision to conduct a preliminary inquiry instead of registering a case based on the ED’s report.

The plea stems from material allegedly shared by the ED with the Kerala Police following its investigation into financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Private Limited, owned by Veena.

Instead of registering an FIR, the State constituted a Special Investigation Team (SIT), headed by Crime Branch Additional Director General of Police H Venkatesh, to conduct a preliminary inquiry. The petitioner challenged this decision, arguing that the ED had unearthed material suggesting the possible commission of offences under the Prevention of Corruption Act, 1988, and the Prevention of Money Laundering Act (PMLA).

Shajahan also requested that the investigation be handed over to the Vigilance and Anti-Corruption Bureau (VACB). He also sought directions to the State Police and the Vigilance Director to act on complaints he had submitted on September 22.

Advocate General Jaju Babu, appearing for the State, raised a preliminary objection to the maintainability of the petition. Jaju Babu also contended that the ED's communication of information did not prevent the State agency from independently examining the material to determine whether it disclosed an offence warranting the registration of an FIR.

What is the CMRL-Exalogic case?

The case concerns financial transactions between Cochin Minerals and Rutile Limited (CMRL), a Kochi-based mineral-processing company, and Exalogic Solutions Pvt Ltd, a company associated with Veena Vijayan.

The ED has alleged that CMRL paid approximately Rs 3.28 crore to Veena’s company without receiving services corresponding to the payments. The agency has sought a separate corruption investigation into the transactions, alleging that the payments could constitute part of a bribery arrangement.

The ED forwarded information gathered during its investigation to the Kerala Police Chief under Section 66(2) of the Prevention of Money Laundering Act (PMLA), seeking the registration of a case under the Prevention of Corruption Act and other relevant laws.

The agency’s communication reportedly included material concerning the transactions and allegations involving Pinarayi Vijayan, Veena Vijayan and Mohammed Riyas.