CMRL-Exalogic case: Pinarayi Vijayan, family move Kerala HC against order directing Vigilance FIR

Former Kerala Chief Minister Pinarayi Vijayan, his son-in-law, former minister PA Mohamed Riyas and daughter Veena T have approached the Kerala High Court seeking to overturn a direction to register a Vigilance case against them.The separate appeals, filed on October 12, challenge a single judge’s order directing the Vigilance and Anti-Corruption Bureau (VACB) to register a First Information Report (FIR) invoking provisions of the Prevention of Corruption Act over alleged financial dealings between Cochin Minerals and Rutile Limited (CMRL) and Exalogic Solutions Pvt Ltd.The petitioners have also sought permission to pursue the appeals, contending that they were not parties to the original proceedings.The High Court’s direction led to the registration of two FIRs by the VACB on Monday. Pinarayi Vijayan is named as the first accused in one case, while his son-in-law, former minister PA Mohamed Riyas, is the first accused in the other. Veena is listed as the second accused in both cases.The FIRs contain allegations of corruption and conspiracy relating to payments made by CMRL and its associate concern to Exalogic and Veena. The allegations have not been established in a criminal trial.In their appeal, Pinarayi and Veena argue that the single judge should not have issued directions with serious consequences for them without first hearing their side. They have cited the absence of an opportunity to present their case as a ground for challenging the order.The appellants have also disputed the court’s assessment of the material forwarded by the Directorate of Enforcement (ED), arguing that the communication did not provide sufficient grounds to conclude that offences under the Prevention of Corruption Act had been disclosed. They have challenged the decision to invalidate the state government’s constitution of a Special Investigation Team to conduct a preliminary enquiry.Another major argument concerns the jurisdiction of state agencies to investigate the transactions. The appellants point out that the Union government had assigned the CMRL-Exalogic transactions to the Serious Fraud Investigation Office (SFIO). They contend that Section 212(2) of the Companies Act bars other agencies from undertaking an investigation into the same transactions once such an investigation has been ordered.The appeals maintain that the VACB cannot register an FIR concerning the transactions in these circumstances. They have also questioned the conclusion that the police were required to register a case solely on the basis of information received from the ED.The petitioners further challenge the maintainability of the original writ petition, arguing that its petitioner lacked the legal standing to initiate the proceedings. They have also raised the question of whether the petition was filed prematurely and whether other available remedies should have been pursued first.An interim stay of the single judge’s order has been sought pending consideration of the appeals.The first FIR alleges that Pinarayi Vijayan used his official position to secure financial benefits for himself, his daughter and Exalogic. It refers to payments amounting to Rs 3.28 crore from CMRL and Empower India Capital Investments to Veena and her company, allegedly for consultancy and marketing services.According to the FIR, Exalogic received Rs 3 lakh a month, while Veena was paid Rs 5 lakh monthly as a consultant. The investigating agency alleges that the payments were made despite the services not being provided.The second FIR names Riyas as the principal accused and alleges illicit financial enrichment and a conspiracy involving Veena and others. It also refers to the alleged transfer of funds into domestic and overseas assets through benami arrangements and offshore channels.The cases were registered by the VACB’s Special Investigation Unit, with SP Emmanuel Paul appointed as investigating officer, while Vigilance Director Manoj Abraham will oversee the probe.