Former Kerala Chief Minister Pinarayi Vijayan has approached the Supreme Court challenging the Kerala High Court’s direction to register a First Information Report (FIR) in the alleged CMRL-Exalogic payoff case, after the High Court declined to permit him and two family members to appeal against the order.
The challenge follows the Kerala High Court Division Bench’s dismissal on October 15 of the leave petitions filed by Vijayan, his daughter Veena T., and his son-in-law and former minister Mohammed Riyas. The three had sought permission to challenge a Single Judge’s ruling directing the State Vigilance and Anti-Corruption Bureau (VACB) to register an FIR under the Prevention of Corruption Act.
The Single Judge had found that the State government could not order a preliminary inquiry in place of registering an FIR when the Directorate of Enforcement (ED) had furnished information under Section 66(2) of the Prevention of Money Laundering Act (PMLA) containing material disclosing alleged cognisable offences.
The controversy arose after the ED communicated information to the Kerala Police concerning alleged financial transactions between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Pvt. Ltd., a company associated with Veena T.
Instead of immediately registering an FIR, the State government had directed a preliminary inquiry through a special investigation team. The High Court’s Single Judge subsequently set aside that decision and directed the VACB to register an FIR on the basis of the information supplied by the ED.
The court held that, in the circumstances of the case, the material forwarded by the central agency disclosed sufficient grounds to warrant registration of an FIR under the Prevention of Corruption Act. It directed the competent vigilance authorities to investigate the allegations.
The case concerns allegations that CMRL, a publicly listed company, made payments aggregating approximately ₹1.72 crore to Exalogic between 2017 and 2020, purportedly without receiving corresponding services.
The ED has been examining the transactions as part of its investigation into alleged financial irregularities. The agency has also communicated information to the State authorities seeking registration of a corruption case against the persons named in its communication.
The allegations remain subject to investigation and have not, by themselves, established criminal liability against the individuals concerned.
Vijayan, Veena and Riyas had challenged the Single Judge’s decision before a Division Bench of the Kerala High Court, contending, among other things, that the order had been passed without hearing them and that the proceedings raised questions concerning the proper procedure and jurisdiction.
The Division Bench, comprising Justice K. Natarajan and Justice Johnson John, dismissed their petitions seeking leave to appeal on October 15. The court observed that the applicants had not established a prima facie or arguable case warranting permission to appeal and that the order did not prevent them from pursuing other legal remedies against the registration of an FIR.
The High Court had also indicated that remedies to seek quashing of an FIR or criminal proceedings remain available under the applicable law.
Vijayan has now moved the Supreme Court against the High Court’s direction in the matter. The Supreme Court’s consideration of his challenge will determine the next stage of the legal contest over the registration of an FIR in the CMRL-Exalogic case.
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