Kerala High Court Upholds Stay on Inquiry into ED's Alleged Practices

The Kerala High Court confirmed its stance on Friday, maintaining the 2021 interim order that paused the state government's move to set up a Commission of Inquiry (CoI). This commission was intended to investigate claims regarding the Enforcement Directorate (ED)'s attempt to implicate Chief Minister Pinarayi Vijayan in a controversial gold smuggling case involving diplomatic channels.

A bench comprising Justices Sushrut Arvind Dharmadhikari and Syam Kumar V M determined that the single judge's interim order dated August 11, 2021, was without error. Consequently, they dismissed the Kerala government's appeal, stating it lacked merit. The court highlighted the legislative competence issue of the state's decision to appoint a CoI as unresolved.

The initial stay was put in place based on concerns that the CoI's actions could interfere with ongoing investigations and prosecutions by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA), 2002. While addressing the state's competence, the single judge remarked that a CoI is a fact-finding body without adjudicatory authority, stressing potential prejudice and derailment of justice.

(With inputs from agencies.)