Kerala HC dismisses CMRL appeal against ED money laundering probe

The Kerala High Court on Friday dismissed an appeal filed by CMRL against a single-judge verdict allowing the ED to continue its money laundering probe into the mining company’s financial dealings with Veena T, daughter of former Kerala Chief Minister Pinarayi Vijayan.

A Division Bench comprising Justice Raja Vijayaraghavan and Justice K V Jayakumar upheld the single-judge order of May 26, saying it finds no reason to interfere with that judgement. The High Court also declined the request by the lawyer for Cochin Minerals and Rutile Ltd (CMRL) to protect it for two weeks so that it can move an appeal before the Supreme Court.

While dismissing the company’s appeal, the bench said, “Non-registration of an FIR or non-filing of a complaint in respect of a scheduled offence will not bar the ED from initiating civil action under the Prevention of Money Laundering Act (PMLA). Registration of a scheduled offence is a pre-requisite only for a penal prosecution and not for civil action or for the exercise of inquiry powers under the Act.”

The court also rejected the company’s plea to quash the Enforcement Case Information Report (ECIR) registered by the Enforcement Directorate (ED). The bench said that the ECIR was not a statutory document and since its non-registration does not impede the commencement of civil action, the prayer to quash the same cannot be granted in the case.