CMRL Moves Division Bench Against Kerala HC Order Refusing To Quash ED Summons In Exalogic Case

An appeal has been filed before the Kerala High Court against a Single Judge's refusal to quash the Enforcement Directorate's money laundering probe linked to alleged payments of ₹1.72 crore made by Cochin Minerals and Rutile Limited (CMRL) to Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan, and her company, Exalogic Solutions Pvt Ltd.

The appeal also challenges summons issued by the ED to CMRL officials.

The appeal challenges Justice T.R. Ravi's May 26 judgment dismissing a writ petition filed by CMRL and its officers against the Enforcement Case Information Report (ECIR) registered under the Prevention of Money Laundering Act (PMLA) and the summons issued by the ED during the investigation.

The Single Judge held that the challenge was premature as the ED had only issued summons seeking the appearance of company officials and production of documents and that no cause of action had arisen at that stage.

The Court also rejected CMRL's contention that immunity granted in income tax settlement proceedings barred action under the PMLA. It further held that the subsequent filing of an SFIO complaint alleging offences under Section 447 of the Companies Act meant that CMRL's argument regarding the absence of a scheduled offence no longer survived.

In the appeal, CMRL contended that the Single Judge reserved judgment on August 7, 2024 after hearing detailed arguments, but delivered the verdict only on May 26, 2026. The company argued that the delay caused serious prejudice.

CMRL further contended that the Single Judge relied on additional affidavits filed by the ED after reserving judgment without giving it an opportunity to respond, violating the principles of natural justice.

"However, despite the specific request, and without giving the Appellants an opportunity to respond to the contents of the Additional Affidavits on merits, the Ld. Single Judge has passed the Impugned Judgement, inter alia relying on the facts stated in the Additional Affidavits by the Respondent," the appeal states.

The appeal is yet to be listed for admission.

For Appellants: Advocates M Gopikrishnan Nambiar, K. John Mathai, Joson Manavalan, Kuryan Thomas, Paulose C Abraham and Raja Kannan