Kochi: The Kerala High Court on Monday refused to grant an immediate stay on the Enforcement Directorate (ED) investigation into the CMRL–Exalogic financial transactions case, allowing the probe to continue.

The matter concerns Exalogic Solutions and its owner Veena Vijayan. The case has drawn sustained political attention in Kerala.

The Cochin Minerals and Rutile Ltd (CMRL) had moved the High Court seeking interim protection after recent ED raids.

ED allowed to continue probe after court hearing

The ED conducted searches at 10 locations last week, including the residence of former Chief Minister Pinarayi Vijayan, where his daughter Veena Vijayan resides.

With the court declining interim relief, the agency retains the legal scope to proceed under the Prevention of Money Laundering Act (PMLA).

The court observed there was no immediate justification to halt an ongoing investigation at the preliminary stage.

Arguments, observations and case background

CMRL argued that the ED had exceeded its jurisdiction and initiated proceedings even before any FIR was registered against the company.

It also submitted that the Serious Fraud Investigation Office (SFIO) probe stemmed from a complaint filed by a political leader.

During the hearing, the court questioned why the investigation should not be allowed to proceed, noting that the company could present all relevant records to establish its position. It also observed that if no wrongdoing was found, CMRL would receive a clean chit.

The bench further asked why the company was objecting to producing documents related to transactions with Exalogic.

The case originates from Income Tax Settlement Board findings regarding alleged payments made by CMRL to Exalogic without corresponding services.

Those findings form part of the material relied upon by the ED in examining possible money-laundering violations.

Senior Supreme Court advocate Siddharth Luthra appeared for CMRL, while the Additional Solicitor General represented the ED.

The court proceeded with detailed arguments but indicated an order was unlikely at this stage.

With no interim relief granted, the ED may continue questioning and summoning individuals connected to the case.

The matter has remained under political focus in Kerala and is being closely tracked by legal and political circles.