Kerala HC Upholds ED Probe into Veena Vijayan-CMRL Dealings

The Kerala High Court on Friday dismissed an appeal by Cochin Minerals and Rutile Ltd (CMRL), allowing the Enforcement Directorate (ED) to continue its money laundering investigation into the company's financial dealings with Veena T., daughter of former Kerala chief minister Pinarayi Vijayan .

The ruling upholds a May 26 single-judge order that permitted the ED to proceed under the Prevention of Money Laundering Act (PMLA) even before the Serious Fraud Investigation Office (SFIO) files a formal FIR or final report in the matter.

The case centres on allegations that Exalogic Solutions , a now-defunct IT firm owned by Veena, received payments from CMRL without rendering corresponding services. The allegations first gained prominence after Congress MLA Mathew Kuzhalnadan raised the issue inside and outside the Kerala Assembly. BJP leader Shone George , whose complaint led to the SFIO probe, has alleged that the payments amounted to bribes intended for the former chief minister.

Welcoming the High Court verdict, both the Congress and the BJP called for a comprehensive investigation into the alleged financial irregularities. Kuzhalnadan claimed that a corruption probe could eventually reach the highest levels of the previous state government, while George described the judgment as a significant step towards uncovering the truth behind the transactions.

Following the earlier court order, the ED conducted searches on May 27 at premises linked to Veena and others connected to the case. The investigation traces its origins to Income Tax searches conducted in January 2019 at CMRL offices and the residences of senior executives.

Beyond the immediate case, the Kerala High Court's ruling carries significant political and legal implications . The verdict reinforces the ability of investigative agencies to pursue money laundering cases even when parallel corporate fraud investigations are still underway. Politically, it intensifies scrutiny of alleged links between business entities and individuals connected to those in power, ensuring that the controversy remains a major issue in Kerala's political landscape.

With the ED probe set to continue, the case is likely to remain under close public and political watch in the months ahead.