CMRL-Exalogic Case: Supreme Court Stays Investigation Against Kerala Ex-CM Pinarayi Vijayan, Kin, For A Week

The Supreme Court on Wednesday stayed the investigation in the FIR registered against former Kerala Chief Minister Pinarayi Vijayan and her daughter in the CMRL-Exalogic case for a week.

It also set aside the Kerala High Court Division Bench's order dismissing his plea for leave to appeal, allowing him to pursue the appeal before the Division Bench and seek interim relief.

A bench of Justice Joymalya Bagchi and Justice V. Mohana passed the order. It clarified that its observations were limited to the issue of Vijayan's locus to file the appeal and did not reflect any opinion on the merits of the case.

“Accordingly, we set aside the impugned order and permit the petitioner to pursue the appeal before the division bench. We make it clear that our observations are limited to the issue at hand, that is, the locus of the petitioner to prefer the appeal and not an expression of opinion on merits. To enable the petitioners to pursue the appeal as well as seek interim relief…..To enable the petitioners to do so, we direct that the investigation in the impugned FIR shall remain stayed for a week,” the Bench ruled.

During the hearing, Senior Advocate Siddharth Luthra, appearing for Vijayan, expressed concern that the FIR had already been registered and apprehended coercive action against the 82-year-old former Chief Minister.

“And see the order that's been passed. I've been shattered in an appeal. Today, the FIR stands registered. 82-year-old gentleman, where do we go? I am rendered penniless, milord. Leave to appeal had to be resisted,” he contended.

The Bench, however, observed that the State had not registered the FIR on its own but pursuant to a judicial order passed by the High Court. It noted that the Single Judge had concluded that the material forwarded by the Enforcement Directorate disclosed a cognizable offence, obligating the State to register an FIR.

“You did not register the FIR on your own. There are two very important things to be decided here. First thing is whether 66(2) (Section 66(2) of PMLA) is a mandate. And there the single judge goes flip-flop. In one paragraph, he says that it's a mandate. In another paragraph, it says that there is some degree of verification necessary. And then goes into the facts and says in this case, there is no case of... because there are materials, overwhelming materials,” the Bench observed.

The Bench also noted that the procedure for directing the registration of an FIR through judicial intervention had changed under the Bharatiya Nagarik Suraksha Sanhita (BNSS). It pointed out that Section 156(3) of the erstwhile Code of Criminal Procedure did not require the involvement of a former public servant or a superior authority before directing the registration of an FIR. In contrast, Section 175(4) of the BNSS incorporates such a requirement.

The case stems from the Enforcement Directorate's (ED) investigation into alleged payments of around ₹1.72 crore made by Cochin Minerals and Rutile Limited (CMRL) to Exalogic Solutions Private Limited, a company owned by Pinarayi Vijayan's daughter, Veena Vijayan, between 2017 and 2020, allegedly without any corresponding services.

After forwarding material indicating possible offences under the Prevention of Corruption Act to the Kerala Police, the State Government ordered a preliminary enquiry by the Crime Branch and constituted a Special Investigation Team.

On a petition filed by Advocate K.M. Shajahan, the Single Bench of Kerala High Court, on October 9, directed the registration of an FIR against Vijayan, Veena Vijayan and Mohammed Riyas, holding that a preliminary enquiry was unwarranted in the circumstances. The court also set aside the order constituting the SIT.

The Division Bench subsequently dismissed the leave petitions filed by the three seeking permission to appeal against the Single Bench order.

Aggrieved by the High Court's directions, Pinarayi Vijayan approached the Supreme Court, challenging the order directing registration of the FIR. Veena Vijayan and Mohammed Riyas have also approached the Apex Court in connection with the matter.