Kerala High Court Upholds ED’s PMLA Probe into CMRL; Rules Predicate Offence Not Mandatory for Civil Attachment Action
A Division Bench of the Kerala High Court (Justices Raja Vijayaraghavan V and KV Jayakumar) on 5 June 2026 dismissed an appeal by Cochin Minerals and Rutile Limited (CMRL) and four officials seeking to quash the ED’s PMLA investigation. The Court held that registration of a predicate offence is a prerequisite only for criminal prosecution, not for civil attachment action or inquiry under the PMLA — a ruling with wide implications for ED civil enforcement powers. The probe, which also involves SFIO, centres on alleged fictitious cash expenses of ₹182 crore over 15 years at CMRL, with a specific allegation of ₹1.72 crore paid to Exalogic Solutions, a firm owned by Veena Vijayan, daughter of former Kerala CM Pinarayi Vijayan.
Key Details
- Regulator: ED / SFIO / Kerala High Court
- Date: 5 June 2026
- Document / Order No.: Not specified in source
- Parties: Directorate of Enforcement (ED),Serious Fraud Investigation Office (SFIO),Cochin Minerals and Rutile Limited (CMRL),Veena Vijayan / Exalogic Solutions Pvt Ltd,Kerala High Court
- Industry Impact: Mining / Minerals / Corporate Enforcement
- Effective Date: 2026-06-05
- Source Type: Judicial Order — Division Bench, Kerala High Court
Why It Matters
The Kerala High Court has clarified that the ED does not need a registered predicate offence to initiate civil attachment action or inquiry under the PMLA — expanding the practical scope of ED’s civil enforcement powers. This ruling directly affects companies and individuals under PMLA scrutiny who previously relied on the absence of a predicate FIR as a shield against attachment. The judgment, arising from allegations of ₹182 crore in fictitious cash expenses at CMRL over 15 years, also draws attention to SFIO-ED coordination in corporate fraud investigations.
FAQ
Q: What did the Kerala High Court rule about predicate offences under the PMLA?
A: A Division Bench of the Kerala High Court (Justices Raja Vijayaraghavan V and KV Jayakumar) ruled on 5 June 2026 that registration of a predicate offence is a prerequisite only for criminal prosecution under the PMLA, not for civil attachment action or inquiry by the ED.
Q: What are the core allegations against Cochin Minerals and Rutile Limited (CMRL)?
A: According to the sources, the ED and SFIO probe centres on alleged fictitious cash expenses of ₹182 crore recorded over 15 years at CMRL. A specific allegation involves ₹1.72 crore paid to Exalogic Solutions Pvt Ltd, a firm owned by Veena Vijayan, daughter of former Kerala Chief Minister Pinarayi Vijayan.
Q: Who filed the appeal and what was the outcome?
A: Cochin Minerals and Rutile Limited (CMRL) and four of its officials filed an appeal seeking to quash the ED’s PMLA investigation. The Kerala High Court’s Division Bench dismissed the appeal on 5 June 2026, upholding the ED’s authority to continue the probe.
