The Kerala High Court on Thursday dismissed pleas by former chief minister Pinarayi Vijayan, his daughter Veena T, son-in-law and former minister P A Mohamed Riyas, and other accused challenging the registration of an FIR in the alleged CMRL-Exalogic payoff case.
A division bench of Justices K Natarajan and Johnson John rejected their applications seeking permission to appeal against a single bench order, as well as their appeals against that order. The decision means the applicants cannot challenge the single bench ruling before the division bench as a matter of right, although they can approach the Supreme Court.
The single bench had set aside the Kerala government’s order constituting a special investigation team and directed the vigilance director to register an FIR against the accused under the Prevention of Corruption Act. The order followed a petition by K M Shajahan, a political activist from Thiruvananthapuram.
The division bench rejected the contention that the single bench had acted without hearing the accused. It held that an accused person does not have a legal right to be heard before an FIR is registered in a corruption case. The court also said that a preliminary inquiry is not mandatory when information provided under the Prevention of Money Laundering Act is accompanied by sufficient material indicating a cognisable offence.
The ruling has implications for how corruption complaints involving public servants are handled at the initial stage. According to the judgment, a preliminary inquiry may be dispensed with when a senior officer receives a detailed and well-reasoned source information report that prima facie discloses a cognisable offence under the Prevention of Corruption Act.
The case originated with a recommendation from the Enforcement Directorate to the state police chief under Section 66(2) of the Prevention of Money Laundering Act. The recommendation sought registration of a vigilance case against Vijayan and others in connection with the alleged payments involving Cochin Minerals and Rutile Limited, or CMRL, and Exalogic Solutions, a now-defunct company associated with Veena.
Instead of registering a case immediately, the state government formed an SIT to conduct a preliminary inquiry into the ED’s recommendation. The single bench subsequently struck down that decision and ordered the vigilance director to register an FIR. The division bench noted the state government’s submission that two vigilance cases had already been registered in compliance with the order.
The ED has alleged that CMRL paid Rs 3.28 crore to Exalogic under the guise of IT consultancy services. The allegation remains part of the investigation and has not been established as a criminal finding against the accused. The applicants may still seek to have the FIRs quashed by filing appropriate petitions, while a challenge before the Supreme Court remains open.
