Kochi, June 1 (IANS) The Kerala High Court on Monday reserved its verdict on a plea filed by Cochin Minerals and Rutile Ltd. (CMRL) challenging the Enforcement Directorate’s money-laundering investigation in the controversial CMRL-Exalogic case, one of the most closely watched legal and political battles in the state in recent years.
A Division Bench comprising Justices Raja Vijayaraghavan V. and K.V. Jayakumar said the verdict would be delivered on Friday.
Until then, the court directed the Enforcement Directorate (ED) not to initiate any coercive action against the appellants in the case.
The temporary protection came after senior Supreme Court advocate Siddharth Luthra, appearing for CMRL, expressed concern that company officials could face harassment while the matter was under consideration.
The court subsequently recorded an undertaking from the ED that no precipitative action would be taken against the appellants until the judgment is pronounced.
However, the court clarified that the protection applies only to the petitioners before it and does not extend to individuals who are not parties to the appeal.
During the lengthy hearing, CMRL mounted a strong challenge against the very basis of the ED investigation.
The company argued that the agency had initiated proceedings without the existence of a predicate or scheduled offence, which is a prerequisite for invoking provisions of the Prevention of Money Laundering Act (PMLA).
It contended that neither an FIR nor a formal complaint existed when the ED registered its Enforcement Case Information Report (ECIR) and began issuing summons.
The ED, represented by Additional Solicitor General A.R.L. Sundaresan and Special Counsel Zoheb Hossain, countered that the agency was fully empowered to seek information and conduct an inquiry based on material available before it.
The agency argued that questions surrounding payments made by CMRL to Exalogic and findings emerging from investigations by the Serious Fraud Investigation Office (SFIO) warranted a detailed probe.
The Bench appeared reluctant to interfere with the investigation at its current stage, repeatedly questioning why the agency should not be allowed to complete its inquiry.
The judges observed that if the company had committed no wrongdoing, it could establish its innocence by producing the required documents and records.
The case has assumed major political significance because of allegations relating to financial transactions involving Exalogic, owned by Veena Vijayan, the daughter of former Chief Minister Pinarayi Vijayan.
The High Court’s verdict on Friday is expected to determine the immediate future of the ED probe and could have far-reaching legal and political implications.
–IANS
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