Kerala HC upholds ED probe into Exalogic-CMRL payments, BJP hails ruling
Synopsis
The Kerala High Court has cleared the Enforcement Directorate to continue probing alleged irregular payments from CMRL to Veena Vijayan's IT firm Exalogic, rejecting the company's fundamental rights argument and its bid for a stay. BJP's Shone George called it proof that justice cannot be bought — and alleged the former CM's daughter was only an intermediary in a larger network of nepotism.
Key Takeaways
The Kerala High Court on 5 June dismissed CMRL's petition challenging the ED probe into alleged payments to Exalogic .
The court ruled that the ED does not need to register an ECIR to conduct its investigation.
The court also rejected CMRL's plea for a two-week stay to approach the Supreme Court .
The case centres on alleged illegal gratification paid to Veena Vijayan's IT firm by CMRL , a company with Kerala state government shareholding.
BJP leader Shone George alleged the GST invoices were fake and that Veena Vijayan was 'only an intermediary.'
The Kerala High Court on Friday, 5 June dismissed a challenge by Cochin Minerals and Rutile Limited (CMRL) against the Enforcement Directorate (ED) investigation into alleged irregular payments linked to Exalogic, the IT firm associated with Veena Vijayan, daughter of former Chief Minister Pinarayi Vijayan. The ruling clears the way for the ED to continue its probe without registering a formal Enforcement Case Information Report (ECIR), rejecting the company's core legal argument.
What the Court Decided
A division bench of the Kerala High Court upheld the ED's right to proceed with its investigation, ruling that CMRL's contention — that the agency could not investigate without an ECIR — was not legally sustainable. The court also rejected a separate plea by CMRL seeking a two-week stay on the order to allow it to approach the Supreme Court.
The petition had been filed by CMRL Managing Director Sashidharan Kartha and five company officials, who alleged the central agency's investigation violated their fundamental rights. The court found no merit in that argument.
The Allegations at the Centre of the Case
The probe relates to alleged illegal gratification received by Exalogic — Veena Vijayan's IT firm — from CMRL in the form of monthly payments. Veena Vijayan is also the wife of Beypore CPI-M legislator and former State Minister P.A. Mohammed Riyas. The matter drew political attention following allegations that the payments were tied to persons linked to the ruling establishment in Kerala.
CMRL is a company in which the Kerala state government holds a shareholding, adding a layer of public-interest scrutiny to the transactions under investigation.
What BJP Leader Shone George Said
Bharatiya Janata Party (BJP) leader Shone George welcomed the ruling, stating it proved that 'the Indian legal system could not be bought.' He argued there was no need for the ED to collect fresh evidence, asserting that the irregularities were already on record.
George alleged that the invoice submitted for GST payment was fake and pertained to services that were never rendered. He further alleged that Veena Vijayan was 'only an intermediary' and that ultimate responsibility lay elsewhere — though he did not name the individual he was referring to. He also claimed the state government itself had the authority to initiate a case if it chose to.
George noted that the case he was pursuing was distinct from the one raised by Congress leader Mathew Kuzhalnadan, describing them as different in nature. 'There is no immunity for a criminal offence that has taken place,' he said.
Background and Political Context
The Exalogic-CMRL matter has been one of the more politically charged financial investigations in Kerala in recent years, cutting across party lines. The alleged payments by CMRL, according to the BJP, were aimed at securing undue benefits and amounted to nepotism. The case has drawn scrutiny both from the BJP and sections of the Congress, though their legal approaches reportedly differ.
With the High Court now clearing the ED's path, the agency is expected to press ahead with its inquiry into the full scope of the transactions. Whether CMRL or its officials will seek relief from the Supreme Court remains to be seen.
Point of View
But the more significant signal is what it forecloses: CMRL can no longer use the absence of an ECIR as a shield. The case sits at an uncomfortable intersection — a state government-linked company, the chief minister's daughter's firm, and a central agency investigation — which makes every development here a political flashpoint. What the BJP's framing obscures is that allegations and convictions are not the same thing; George's assertion that Veena Vijayan was 'only an intermediary' is a political claim, not a judicial finding. The real test of this probe's credibility will be whether the ED's eventual findings are backed by documentary evidence that can survive Supreme Court scrutiny — or whether this becomes another high-profile investigation that generates headlines without legal closure.
NationPress
21 Jul 2026
Frequently Asked Questions
What is the Exalogic-CMRL case about?
The case involves allegations of illegal gratification paid by Cochin Minerals and Rutile Limited (CMRL) to Exalogic, the IT firm of Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan. The ED is investigating whether these payments were made to secure undue benefits, with BJP leaders also alleging that GST invoices submitted were fake and related to services never rendered.
What did the Kerala High Court rule on 5 June?
The Kerala High Court dismissed CMRL's petition challenging the ED's investigation, ruling that the agency does not require an Enforcement Case Information Report (ECIR) to proceed. The court also rejected CMRL's request for a two-week stay to approach the Supreme Court.
Who filed the petition against the ED probe?
The petition was filed by CMRL Managing Director Sashidharan Kartha along with five company officials, who argued that the ED's investigation violated their fundamental rights. The court found this argument legally unsustainable.
What is Veena Vijayan's connection to the case?
Veena Vijayan is the daughter of former Kerala Chief Minister Pinarayi Vijayan and wife of Beypore CPI-M legislator and former State Minister P.A. Mohammed Riyas. Her IT firm Exalogic is at the centre of the allegations, with the ED probing payments CMRL allegedly made to the firm.
What happens next in the ED investigation?
With the High Court clearing its path, the ED is expected to continue its investigation into the full scope of transactions between CMRL and Exalogic. Whether CMRL or its officials will seek relief from the Supreme Court remains unclear following the rejection of their stay application.
