The ED argued that police need not conduct a separate preliminary inquiry when its report provides material for an FIR in the CMRL-Exalogic case.
Kochi: The Enforcement Directorate (ED) on Tuesday told the Kerala High Court that an FIR could be registered based on the report it submitted to the state police seeking a case under the anti-corruption law in connection with the alleged CMRL-Exalogic bribery case.
The ED's submission came during the hearing of a plea by advocate K M Shajahan, who has sought registration of an FIR instead of a preliminary inquiry. The court, after hearing both sides, reserved its judgment.
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ED says report can form basis for FIR
Appearing for the ED, advocate Jaishankar Nair said the agency's report could be treated as a preliminary inquiry report and that an FIR could be registered on its basis.
He also told the court that the state police had not sought the statements recorded by the ED during its investigation.
The ED has sought registration of a case based on material it said was gathered during its probe and searches conducted under the Prevention of Money Laundering Act (PMLA).
Also read | ‘What is the crime in that?’: Pinarayi Vijayan defends Exalogic-CMRL deal
State seeks preliminary inquiry
The state government opposed the ED's contention, arguing that the report submitted by the agency was not sufficient to register an FIR and that a preliminary inquiry was required.
The government said the report did not contain statements recorded by the ED in support of its allegations against former Chief Minister Pinarayi Vijayan, his daughter Veena T and her husband, former minister P A Mohamed Riyas.
The state had earlier ordered a preliminary police inquiry based on the ED's communication to the State Police Chief. The issue before the High Court is whether such an inquiry can precede registration of an FIR in these circumstances.
Also read | Kerala Lop Pinarayi Vijayan, Veena and Riyas under scanner: Timeline of CMRL-Exalogic case
Kerala HC reserves judgment
Justice A Badharudeen reserved judgment on Shajahan's plea seeking registration of an FIR.
The central legal question before the court is whether the state police are required to register an FIR on receiving information forwarded by the ED under Section 66(2) of the PMLA, or whether they can first conduct a preliminary inquiry.
What ia the CMRL-Exalogic case?
The case concerns alleged financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions, a company previously owned by Veena T.
The ED has alleged that CMRL made fraudulent payments of ₹2.78 crore to Exalogic under the guise of IT consultancy services. The allegations concern possible offences under the Prevention of Corruption Act and remain subject to investigation and judicial consideration.
The ED had earlier forwarded material to the Kerala Police seeking registration of a case under the anti-corruption law. The state government subsequently ordered a preliminary inquiry by a Crime Branch special investigation team.
The High Court's verdict on whether an FIR should be registered directly or a preliminary inquiry can precede it is awaited.
(With PTI inputs)
Published: 29 Sept 2026, 09:31 pm IST
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