Kochi: In a major setback to the Kerala government, the High Court Division Bench has dismissed the state's argument that the Enforcement Directorate (ED) had no legal standing to challenge the Judicial Commission set up by the government.

The Commission, headed by V K Mohanan, was constituted to probe revelations related to an ongoing investigation — details of which have been under national scrutiny. The High Court had earlier stayed the functioning of the Commission after the ED moved the court, questioning the validity and intent behind its formation.

In response, the state government argued that the ED had no jurisdiction or right to question the appointment of a state-appointed commission. However, the Division Bench rejected this contention, reaffirming the maintainability of the ED's petition.

This ruling is seen as a legal and political setback for the government, especially as it raises questions about the impartiality and necessity of the Commission in the backdrop of Central investigations.