Kerala High Court Directs FIR Registration in CMRL Bribery Case

A single bench of the Kerala High Court on Friday directed the state Vigilance and Anti-Corruption Bureau to register an FIR against former chief minister Pinarayi Vijayan, his daughter T Veena, son-in-law Muhammed Riyas and others over alleged illegal payments to Veena’s IT firm.

Last month, the Enforcement Directorate (ED), which is probing allegations that Veena’s firm, Exalogic Solutions, received illegal payments from Kochi-based Cochin Minerals and Rutile Limited (CMRL) when the CPI(M) was in power, recommended that the state police register an FIR against Vijayan and others, including Veena and Riyas, under the Prevention of Corruption Act.

A former minister, Riyas is a member of the CPI(M) state secretariat. Instead of registering an FIR, the Congress-led government ordered a preliminary inquiry by the state Crime Branch, with a decision on registration to be taken after the inquiry. Challenging this decision, K M Shajahan, a former additional private secretary to former chief minister V S Achuthanandan, approached the high court.

The ED also joined the proceedings. After hearing all parties, including the state government, Justice A Badharudeen allowed the petition and directed that an FIR be registered. The ED argued that the Crime Branch could not conduct a preliminary probe and that an FIR should be registered based on its recommendation.

The state government contended that the petition was not maintainable and that the investigating agency could conduct a preliminary inquiry before registering an FIR. The ED has alleged that CMRL paid Veena’s Exalogic Solutions Rs 2.78 crore under the guise of IT consultancy fees despite the firm not providing any services.

The Income Tax Department had unearthed the alleged payments, made during Vijayan’s first term as chief minister. In May, the ED searched Vijayan’s premises and eight premises linked to local CPI(M) leaders in Kozhikode district, claiming to have found evidence of money transfers through hawala routes.

According to the ED’s report to the state police, Vijayan received Rs 3.28 crore from CMRL as a bribe through Veena. The agency cited an alleged admission by CMRL’s former chief financial officer and claimed that Riyas helped transfer the money to Dubai through Veena and others. The ED has also sought an FIR against senior employees of Exalogic Solutions.

Vijayan has denied the allegations, asserting that his hands are clean. Another probe against Vijayan If the state government proceeds with registering an FIR against Vijayan in compliance with the high court directive, it would be the second major corruption probe he has faced in his decades-long political career.

The CBI had previously investigated Vijayan in the alleged SNC-Lavalin corruption case, in which he was an accused. The case stemmed from decisions taken by the electricity department between 1995 and 1997, when Vijayan was power minister in the LDF government. The state electricity board had entered into a contract with Canadian firm SNC-Lavalin to renovate hydel power projects in Keralam, allegedly causing a loss of Rs 374.50 crore to the state exchequer.

Although the CBI charge-sheeted Vijayan and others for criminal conspiracy and other offences, a special CBI court and the Kerala High Court discharged him, citing a lack of evidence of personal financial gain. The CBI’s review petition has been pending in the Supreme Court for several years.

The Congress government led by Oommen Chandy ordered a CBI probe into Vijayan and others in the Lavalin case in early 2006. As another probe looms over Vijayan, the political landscape in Keralam and nationally has changed significantly. Vijayan has completed two terms as chief minister and is a senior member of the CPI(M) politburo.

His party is also part of the INDIA alliance, headed by the Congress at the national level.