Kochi, Sep 26 (SocialNews.XYZ) The Kerala High Court on Saturday raised questions over the state government's decision to order a preliminary enquiry instead of registering an FIR on the Enforcement Directorate's recommendation for a probe under the Prevention of Corruption Act in the CMRL-Exalogic case involving former Chief Minister and Leader of Opposition Pinarayi Vijayan, his daughter Veena Vijayan, her husband and former minister P.A. Mohammed Riyas, who is currently an MLA.
Justice A. Badharudeen said the court would examine the legal question of whether the State Police had the discretion to conduct a preliminary enquiry after receiving information from the ED under Section 66(2) of the Prevention of Money Laundering Act (PMLA), or whether it was bound to register an FIR.
The court directed the ED to produce in a sealed cover the communication sent to the State Police Chief and posted the case for detailed hearing on September 29.
The ED strongly opposed the delay in registering the FIR. Its counsel told the court that the agency had shared information regarding the alleged commission of offences with the State Police Chief during its investigation and that the material disclosed offences requiring investigation by the State Police or the Vigilance and Anti-Corruption Bureau.
The ED maintained that there was no discretion available to the State Police to conduct a preliminary enquiry after receiving such information and that an FIR should be registered.
The court specifically asked whether the State Police had any option other than registering an FIR when information under Section 66(2) of the PMLA is forwarded to it.
The Advocate General, K. Jaju Babu, defended the government's decision to order a preliminary enquiry.
He argued that there was no requirement to register an FIR immediately and that the police could first verify the information.
He also questioned the maintainability of the petition, contending that it was like a public interest litigation but had been filed with a vested interest.
The petitioner argued that the Crime Branch SIT constituted by the government did not include the Vigilance and Anti-Corruption Bureau despite the ED alleging offences under the Prevention of Corruption Act.
The ED said its investigation had uncovered transactions that required examination as possible predicate offences. The agency had subsequently written to the State Police Chief under Section 66(2) of the PMLA seeking action under the Prevention of Corruption Act.
The State government had ordered a 30-day preliminary enquiry by a nine-member Crime Branch SIT after obtaining legal advice. The government has maintained that the Supreme Court's rulings permit a preliminary enquiry in appropriate cases before registration of an FIR.
The High Court also referred to the requirement of a predicate offence for PMLA proceedings and questioned the ED on the legal basis of its action.
The ED explained that the Serious Fraud Investigation Office had initially registered proceedings over Companies Act offences and that, during its investigation, the ED came across material indicating possible offences under the Prevention of Corruption Act.
The case assumes significance as the High Court had in June allowed the ED's PMLA investigation into the CMRL-Exalogic transactions to continue, holding that the absence of an FIR relating to a scheduled offence did not prevent the ED from exercising its inquiry powers under the PMLA.
The latest hearing has now put the legality of the State government's decision to conduct a preliminary enquiry before registration of an FIR at the centre of the dispute.
Source: IANS
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