High Court refuses immediate stay on ED probe into CMRL-Exalogic transactions case

KOCHI: The Kerala High Court has declined to grant an immediate stay on the Enforcement Directorate's (ED) investigation into the CMRL-Exalogic transactions. The court rejected CMRL's plea seeking an urgent stay on the probe and the cancellation of a single bench order that had upheld the ED's actions. After hearing arguments from both sides for more than two hours, the division bench reserved its verdict for Friday. The court, however, directed the ED not to take any further action until the order is pronounced.

CMRL argued that when it received a summons from the ED in 2024, there was neither an FIR nor any formal complaint against the company. It contended that the central agency was proceeding with a money laundering investigation without any supporting records or documents. The Enforcement Directorate informed the court that it possesses evidence showing that more than Rs 2 crore was paid for services that were allegedly never rendered.

CMRL further argued that the ED had no legal authority to issue a summons in connection with payments made to Exalogic Solutions, a company owned by Veena Vijayan, daughter of former Chief Minister Pinarayi Vijayan. The company had sought an immediate stay on the investigation through its appeal. However, the division bench comprising Justices A. Raja Vijayaraghavan and K. V. Jayakumar said that an interim stay was not possible at this stage. The court also observed that if both parties were prepared for a full hearing, the appeal could be heard and decided without delay.

Earlier, a single bench of the High Court had dismissed CMRL's petition challenging the ED summons. The court had noted that the ED investigation was still at a preliminary stage and that judicial intervention in the summons process was not warranted at that point. Challenging that order, CMRL approached the division bench.