Kerala HC orders status quo for 2 months on SFIO case against CMRL, Kerala CM’s daughter

The Kerala high court on Wednesday ordered that status quo be maintained for two months over a court in Ernakulam taking cognizance of the final prosecution complaint filed by the Serious Fraud Investigation Office (SFIO) in the alleged illegal payment scandal involving Veena T, the daughter of Kerala chief minister Pinarayi Vijayan, and Cochin Minerals and Rutile Limited (CMRL), a minerals manufacturer.

Justice TR Ravi passed the interim order on a petition filed by CMRL and its general manager challenging the decision of the Ernakulam additional sessions court taking cognizance of the SFIO’s charges against top officials of CMRL and Veena T.

The court noted that the matter would be heard in detail post the court’s summer vacation.

“Additional solicitor general takes notice for the first respondent. Issue notice to respondents 2 to 12. The ASG shall place on record their counter affidavit. Since a fundamental question regarding the taking of cognizance has been raised, and since issues concerning the applicability of the Code of Criminal Procedure 1973 (CrPC) and the Bharatiya Nagarik Suraksha Samhita 2023 (BNSS) have been put to question, there will be a direction to the respondents to maintain status quo as on today, for a period of two months,” the judge ruled.

The CMRL had challenged the Ernakulam additional sessions court’s order on the ground that they were not given an opportunity for pre-cognizance hearing under section 223 (1) of BNSS.

The SFIO in its prosecution complaint filed earlier this month charged top officials of CMRL including managing director Sasidharan Kartha and Veena T, the managing director of now-defunct Exalogic Solutions, under various sections of the Companies Act for alleged fraud.

The SFIO, which operates under the corporates affairs ministry, had found fraudulent payments of ₹2.7 crore made by CMRL benefiting Veena T and her firm Exalogic. The agency also found “fraudulent expenses of ₹182 crore under the guise of sludge handling charges and transportation costs” made by CMRL officials including Kartha.

On Tuesday, the Enforcement Directorate (ED) was given a copy of the SFIO complaint as ordered by the Ernakulam court in order to probe whether money laundering was committed under the guise of the alleged illegal payments.

While Veena has not publicly responded to the charges against her, the chief minister alleged there were ‘political motives’ at play behind the SFIO probe and its chargesheet. He had said last week that he did not see the SFIO’s charges seriously and that the matter would be dealt with in court.