Money Laundering Case: ED Can Resume With Independent Probe Against Ebrahim Kunju, Says Kerala HC

The Kerala High Court recently stated that the Enforcement Directorate (ED) is free to conduct its independent investigation into former State Public Works Department (PWD) Minister VK Ebrahim Kunju.

The ED’s investigation is related to a deposit of 10 crores made into the current account of Chandrika daily newspaper during the Central government’s demonetisation drive in 2016. Kunju was the chairman of the governing body of Chandrika, Kochi Unit, at the time.

A division bench of Justice A Muhamed Mustaque and Justice Shoba Annamma Eapen clarified that the stay previously ordered by the High Court was only for the investigation based on a specific private complaint.

As a result, nothing prevents the ED from conducting its own investigation.

“Nothing prevents the Enforcement Directorate from proceeding dehors the complaint as against the appellant independently. No permission is required inasmuch as that it is only a challenge of an order of investigation based on a private complaint. The pendency of this appeal will not stand in the way of the Enforcement Directorate independently proceeding in accordance with law,” the order reads.

In 2019, a petitioner approached the High Court, requesting that the State Police and, later, the ED conduct an investigation into his complaint, which raised allegations along the same lines.

During the petition’s pendency, Kunju was arrested on corruption charges related to the controversial Palarivattom flyover project, which was a pet project of the previous United Democratic Front (UDF) government.

The flyover was found to be unsafe for commuters, and an investigation was allegedly conducted, which revealed that the contract for the flyover was not awarded to the lowest bidder, as is customary practice. Kunju, who was the PWD Minister at the time, was suspected of taking bribes to facilitate the same and was arrested as a result.

Kunju was granted bail by the High Court in January 2021 due to his deteriorating health.

According to the plea, the former Minister used the bank accounts of Chandrika newspaper to deposit illegal money generated by him by abusing his official position as Minister. It was also claimed that one of the defendants in the vigilance case filed in connection with the corruption in the construction of the flyover had revealed to the media that Kunju was involved in that transaction.

The petitioner also claimed that he filed a private complaint with the Vigilance and Anti-Corruption Bureau (VACB) and the State Police, but that no action was taken.

Kunju moved an appeal against the same and a different division bench of the Court stayed the directions of the single-judge.

“There shall be a stay of the directions insofar as directing the respondent No.4/respondent No.3 (Joint director ED, DySP State Police) in the writ petition, to proceed with the investigation, insofar as the appellant is concerned, into the allegations raised by the writ petitioner and also in respect of sharing of the relevant materials by the Joint Director, Enforcement Directorate, Kochi, respondent No.4,” the division bench 2021 order stated.

The ED approached the High Court last week, claiming that they want to proceed independently of the complaint and that they are not proceeding due to the pending appeal.

The bench clarified that its previous order stayed the investigation solely on the basis of the private complaint and would not prevent the ED from conducting an independent investigation.