News Desk: The Supreme Court on Wednesday stayed further investigation for seven days in the CMRL-Exalogic payoff case involving former Kerala chief minister Pinarayi Vijayan, his daughter Veena T and son-in-law, among others. The court also cautioned the Enforcement Directorate (ED) against exceeding its statutory powers and interfering with the functions of other investigative agencies.
A bench comprising Justices Joymalya Bagchi and V. Mohana passed the order during a special sitting held during the Dussehra vacation. The court allowed Vijayan and the other petitioners to pursue their appeals against a Kerala High Court order that had directed the registration of a criminal case.
The Supreme Court clarified that it had stayed further investigation in the FIR for one week, but had not stayed the registration of the FIR itself. It also made clear that its observations should not be treated as a final opinion on the merits of the case.
Supreme Court Warns ED Against Overreach
During the hearing, the bench questioned the ED's role and emphasised that every investigative agency must operate within the limits prescribed by law.
“You have done your statutory duty. It is for the state to do its statutory duty,” Justice Bagchi observed, adding that the ED should not use its powers to interfere with the statutory responsibilities of other agencies.
The court also said that no individual or authority could place themselves above the law. It directed the petitioners to seek appropriate relief before the high court.
What Is the CMRL-Exalogic Case?
The case centres on allegations that Kerala-based Cochin Minerals and Rutile Limited (CMRL) paid more than ₹278 crore to Exalogic Solutions Pvt Ltd, a company wholly owned by Vijayan's daughter, Veena T, without receiving services in return.
According to the allegations, the payments were made between 2017 and 2020. CMRL had engaged Veena as an IT and marketing consultant in January 2017. Subsequent tax assessments reportedly raised questions about payments for which services were allegedly not provided.
The allegations are under investigation and have not been established as proven wrongdoing.
High Court Proceedings and ED Summons
The Kerala High Court's single judge had ordered the registration of an FIR on October 9. The state registered the FIR on October 12, while a division bench dismissed the petitioners' appeal on October 15.
Vijayan's lawyers argued before the Supreme Court that the earlier orders had been passed without giving him an opportunity to be heard. They also questioned the legal basis for ordering the FIR and the role of the petitioner who had approached the high court.
The bench raised questions about statutory safeguards under the Prevention of Corruption Act and the Bharatiya Nagarik Suraksha Sanhita (BNSS), including whether the relevant legal requirements had been followed.
The ED has separately filed a fresh Enforcement Case Information Report (ECIR) alleging money laundering in connection with the same set of allegations. The Supreme Court did not stay those proceedings and left the validity of the ECIR open to challenge separately.
The matter will now return to the Kerala High Court, where the petitioners are expected to pursue their appeals.
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