Kerala HC demands ED records on former CM Vijayan bribery case to test FIR mandate

The Kerala High Court on Saturday directed the Enforcement Directorate to place before it the records it had shared with the Kerala Police while recommending the registration of a case against former chief minister Pinarayi Vijayan and his family in the alleged CMRL bribery case.

The direction came while the court was hearing a petition that challenged the police decision to hold a preliminary inquiry instead of registering an FIR. The court said the rival arguments raised a legal issue that required detailed consideration.

A police inquiry was recently ordered on the basis of an ED letter sent to the state police chief seeking a probe against Vijayan, his daughter Veena T, and her husband P A Mohamed Riyas, MLA. The ED has sought the registration of a case based on "evidence" gathered during its probe and searches carried out under the Prevention of Money Laundering Act.

The agency has alleged that Cochin Minerals and Rutile Limited made fraudulent payments of Rs 2.78 crore to Veena's now-defunct company, Exalogic Solutions, under the guise of "IT consultancy services". Justice A Badharudeen issued the direction while considering a petition filed by K M Shajahan, who argued that the police should register an FIR rather than conduct a preliminary inquiry.

The Advocate General told the court that registration of an FIR was not mandatory on the basis of information shared under Section 66(2) of the PMLA and that a preliminary inquiry, as ordered in this case, was legally permissible. The ED's standing counsel, however, argued that registration of an FIR was mandatory in such a case and that there was no scope for a preliminary inquiry in view of the agency's findings.

The court said the opposing submissions raised a legal question that needed to be heard in detail with reference to relevant judicial decisions. It also recorded the ED standing counsel's submission that the information given to the state police, along with the connected records, would be produced before the court. "In order to maintain secrecy of the information and connected records, the same to be produced before this Court on September 29 in a sealed cover. Both parties are directed to be ready with the relevant decisions governing the legal questions to be addressed," the court said. The petition will be taken up again on September 29.

In sum, the court has sought the ED records in sealed cover and will now examine whether the law required the police to register an FIR immediately or whether a preliminary inquiry was permissible in the alleged CMRL bribery case.