Register FIR against Pinarayi, Veena, and Riyas in CMRL-Exalogic case: Kerala HC

The Kerala High Court on Friday, October 9, directed the registration of a first information report (FIR) invoking provisions of the Prevention of Corruption Act against Leader of Opposition Pinarayi Vijayan, his daughter T Veena and son-in-law P A Mohammed Riyas in the alleged Cochin Minerals and Rutile Ltd (CMRL)-Exalogic payoff case.

Justice A Badharudeen pronounced the decision in open court while allowing a writ petition filed by political activist KM Shahjahan. The detailed order is awaited.

The court's decision follows a legal dispute over whether the state police should register an FIR based on information forwarded by the Enforcement Directorate (ED) under Section 66(2) of the Prevention of Money Laundering Act (PMLA), or conduct a preliminary inquiry before proceeding.

The High Court had reserved its verdict after hearing arguments last week from Advocate General K Jaju Babu, representing the state government, V Sethunath, appearing for the petitioner, and Jaishankar V Nair, representing the ED.

The ED and the petitioner had argued that the information provided to the state police disclosed alleged criminal offences that required an FIR to be registered without a preliminary inquiry. The ED submitted that its investigation had uncovered transactions that warranted examination by the state police or the Vigilance department, as they concerned alleged predicate offences.

The petitioner also questioned the constitution of a Special Investigation Team, arguing that it did not include a Vigilance department member and that its formation required a Cabinet decision under the applicable government order.

The state government, however, maintained that a preliminary inquiry was appropriate if the investigating authorities considered further verification necessary. The Advocate General also argued that the petition was premature and not maintainable, contending that the ED primarily collects information and does not function as a police investigating agency.

The case stems from allegations that payments made by CMRL to Veena and her now-defunct IT company, Exalogic Solutions, between 2017 and 2020 were not genuine remuneration for services but were linked to alleged payments to Vijayan.

According to the ED's findings, CMRL paid a total of Rs 3.28 crore to Veena and Exalogic during the period. The agency has also alleged that Riyas transferred around Rs 1.2 crore to the United Arab Emirates through hawala channels. These remain allegations and are subject to investigation.