The Kerala High Court has dismissed an appeal by Cochin Minerals and Rutile Limited (CMRL), upholding the Enforcement Directorate's (ED) authority to continue its money laundering probe into CMRL's financial transactions with Exalogic Solutions Pvt. Ltd., a firm associated with Veena Thaikandiyil, daughter of the former Chief Minister. The court clarified that the registration of a predicate offense is not a prerequisite for the ED to initiate civil actions like attachment or inquiries under the Prevention of Money Laundering Act (PMLA), and similarly, the non-registration of an Enforcement Case Information Report (ECIR) does not impede civil proceedings. This decision allows the ED's investigation to proceed, despite CMRL's arguments against the probe's validity and its plea for a stay to approach the Supreme Court, which was also denied. The case originated from Income Tax searches and was later investigated by the Serious Fraud Investigation Office (SFIO) before the ED commenced its probe.

The Kerala High Court has dismissed an appeal by Cochin Minerals and Rutile Limited (CMRL), upholding the Enforcement Directorate's (ED) authority to continue its money laundering probe into CMRL's financial transactions with Exalogic Solutions Pvt. Ltd., a firm associated with Veena Thaikandiyil, daughter of the former Chief Minister. The court clarified that the registration of a predicate offense is not a prerequisite for the ED to initiate civil actions like attachment or inquiries under the Prevention of Money Laundering Act (PMLA), and similarly, the non-registration of an Enforcement Case Information Report (ECIR) does not impede civil proceedings. This decision allows the ED's investigation to proceed, despite CMRL's arguments against the probe's validity and its plea for a stay to approach the Supreme Court, which was also denied. The case originated from Income Tax searches and was later investigated by the Serious Fraud Investigation Office (SFIO) before the ED commenced its probe.

The Kerala High Court has dismissed an appeal by Cochin Minerals and Rutile Limited (CMRL), upholding the Enforcement Directorate's (ED) authority to continue its money laundering probe into CMRL's financial transactions with Exalogic Solutions Pvt. Ltd., a firm associated with Veena Thaikandiyil, daughter of the former Chief Minister. The court clarified that the registration of a predicate offense is not a prerequisite for the ED to initiate civil actions like attachment or inquiries under the Prevention of Money Laundering Act (PMLA), and similarly, the non-registration of an Enforcement Case Information Report (ECIR) does not impede civil proceedings. This decision allows the ED's investigation to proceed, despite CMRL's arguments against the probe's validity and its plea for a stay to approach the Supreme Court, which was also denied. The case originated from Income Tax searches and was later investigated by the Serious Fraud Investigation Office (SFIO) before the ED commenced its probe.

In a setback for both Cochin Minerals and Rutile Limited (CMRL) and Veena Thaikandiyil aka Veena Vijayan, daughter of former Chief Minister Pinarayi Vijayan, the Kerala High Court on Friday dismissed an appeal filed by the company against a single-judge verdict allowing the ED to continue its money laundering probe.

The Kerala High Court has earlier rejected CMRL’s request to cancel the ED probe into Veena Vijayan’s firm, Exalogic Solutions Pvt. Ltd., for carrying out illegal financial transactions.

In its directive on Friday, the Bench of Justices Raja Vijayaraghavan V and K V Jayakumar passed the order on an appeal filed by the CMRL challenging a single judge's refusal to quash the ED's investigation into its activities.

Though the petitioner argued that registration of a predicate offence (an underlying  criminal offence which generates illegal money and which is required to charge a person  with a money laundering offence) is essential for ED to initiate a probe, the court observed that it was a prerequisite only for criminal prosecution and not for civil action like attachment or for inquiry under the Prevention of Money Laundering Act (PMLA).

"Non-registration of an FIR or non-filing of a complaint in respect of a scheduled offence will not bar the ED from initiating civil action under the Prevention of Money Laundering Act (PMLA). Registration of a scheduled offence is a pre-requisite only for a criminal prosecution and not for civil action or for exercise of inquiry powers under the Act," it observed.

The court also rejected the company's plea to quash the Enforcement Case Information Report (ECIR) registered by the Enforcement Directorate (ED). The Division Bench held that since the ECIR is not a statutory document, even the non-registration of ECIR does  not impede the commencement of civil action.

The High Court also declined the request by the lawyer for Cochin Minerals and Rutile Ltd (CMRL) to protect it for two weeks so that it can move an appeal before the Supreme Court.

The May 26 single-judge verdict had held that the ED could proceed with its investigation under the PMLA even before the Serious Fraud Investigation Office filed a formal FIR or final report. Following this, the ED had conducted inspections at locations linked to Veena Vijayan, which ended in violence and mob violence.

The case stems from Income Tax searches conducted at the company's offices and the residences of its senior executives in January 2019. It was later investigated by the SFIO following a complaint filed by BJP leader Shone George.

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