Kochi, Sep 26 (NationPress) The Kerala government faced a significant setback on Friday when a Division Bench of the High Court rejected its appeal against an earlier ruling that had put a hold on the establishment of a judicial commission to investigate Enforcement Directorate (ED) officials involved in the high-profile gold smuggling case.

The state had initiated the judicial commission to scrutinize the actions of Central agency officials during their investigation into this case.

However, the Single Bench had previously imposed a stay on the appointment, leading the government to escalate the matter to the Division Bench.

With the dismissal of the appeal, the stay on the commission’s proceedings will persist.

The Enforcement Directorate, which opposed the formation of the judicial commission, contended that no inquiry against its personnel could proceed while the gold smuggling investigation was ongoing.

The agency further referenced provisions of the Commissions of Inquiry Act, 1952, highlighting that a state government lacks the authority to set up a commission to investigate a Central agency.

It also argued that Chief Minister Pinarayi Vijayan's decision to appoint the body constituted an abuse of power and had no legal grounding.

The ED claimed before the court that the state government’s initiative was designed to obstruct the ongoing probe into the gold smuggling scandal.

Conversely, the state government maintained that the ED’s petition lacked legal standing and asserted the commission was rightfully appointed.

However, the court upheld the interim ruling that stayed the commission’s operations.

This development represents a considerable blow to the Kerala government, which has continually accused Central agencies of overstepping their boundaries in this politically sensitive gold smuggling case.

With the Division Bench's ruling, the state has limited legal avenues available as the ED continues its investigation.

The gold smuggling case, which first emerged in 2020 with the interception of contraband gold via diplomatic channels, remains one of the most politically volatile cases in the state, resulting in intense confrontations between state and central agencies.