Kerala HC refuses to remain single Bench orders registration of FIR in CMRL payout case

The Kerala High Court has reserved its order seeking leave to appeal against a single Bench directive to register a First Information Report (FIR) against the accused, including former Chief Minister Pinarayi Vijayan, in the CMRL-Exalogic pay case.

The K. Natarajan and Johnson John Arbitral Tribunal decided that it would not stay the execution of the impugned award until it decides whether to allow the appeal against the order. The Division Bench said the court has to follow the procedure before considering stay.

Senior lawyers Gopalakrishna Kurup, S. Sreekumar and TA Shaji, who represented the accused, Mr. Vijayan, his daughter T. Veena and son-in-law and former PA minister Mohammed Riyas, argued that they were not given an opportunity to be heard even though the judgment directly affected them.

The accused demanded a postponement of the execution of the judgment, saying that any delays would render the appeal pointless. They argued that by directing the FIR to be registered, the single judge denied the options available to the accused. Otherwise, if the Station House Officer or the State registered an FIR, the accused could challenge it in court.

The court orally inquired whether the accused is generally questioned while registering the FIR for the alleged offence. The accused then claimed that they were only challenging the court order directing the registration of the FIR without hearing the affected parties.

Advocate General K. Jaju Babu argued that the state was conducting a preliminary investigation based on information provided by the Directorate of Enforcement against the accused, but the single judge stayed them and directed the registration of an FIR. The state claimed that it wanted to confirm through the preliminary investigation whether an offense had been established based on the information given to the ED.

The State further contended that the suit filed before the Single Judge should have been filed as a PIL to be heard by the appropriate forum. The state stood by its decision to ensure a fair investigation, saying it had discretion whether to register an FIR or conduct a preliminary investigation.

Before a single Bench, the ED informed that it had found a predicate offense under the Prevention of Corruption Act while investigating the CMRL-Exalogic case under the Prevention of Money Laundering Act. As required by law, the ED has forwarded this information to the Vigilance and Anti-Corruption Bureau for registration of an FIR and further investigation.

Acting on the order of a single judge, the VACB registered two cases on allegations relating to financial transactions between Cochin Minerals and Rutil Limited (CMRL) and Ms Veena’s now defunct company Exalogic Solutions Pvt. Ltd., naming Mr. Vijayan, Ms. Veena and Mr. Riyas among the accused.

Mr Vijayan was charged between 2016 and 2020 with abuse of power, accumulation of disproportionate assets and criminal conspiracy through his daughter and her company. The accused have been charged with offenses under the PC Act, the Bharatiya Nyaya Sanhita and the Indian Penal Code.

Published – 13 Oct 2026 20:22 IST