The Kerala High Court, in Adv. K.M. Shajahan v. State of Kerala & Ors. [2026: KER:78014], has held that the State Government’s decision to conduct a preliminary enquiry without registering an FIR against Leader of Opposition Pinarayi Vijayan, and his family members is illegal on the facts of the case.
Therefore, the High Court set aside the Government’s decision to form a Special Investigation Team (SIT) for a preliminary enquiry and directed the Director, Vigilance and Anti-Corruption Bureau (VACB), Thiruvananthapuram, to register an FIR forthwith against Shri Pinarayi Vijayan and his family members.
The FIR is to be based on the information furnished under Section 66(2) of the PMLA, for the PC Act offences disclosed in it. The VACB must investigate through competent officers and file the final report without delay.
The ED’s Information Sufficient to Register FIR
The Court noted that the ED’s information contains sufficient primary material disclosing cognizable offences under the PC Act. No preliminary enquiry is therefore needed, and the State Police are obliged to register the FIR.
The SIT head must hand over the information to the Director, VACB, and the ED must forward all necessary documents. After registering the FIR, the Director, VACB, may call for any other documents required.
Factual Matrix of the Case
The ED alleges that from 2017 to 2020, CMRL (Cochin Minerals and Rutile Ltd.), a public company, made monthly payments totalling ₹1.72 crore to Exalogic Solutions Pvt. Ltd., a company associated with Veena T., without any services being rendered.
In August 2026, the ED stated in a press release that it had collected evidence of hawala transactions running into crores, indicating PMLA offences as well. It then wrote to the Director General of Police, Kerala, asking for an FIR under the PC Act against the three persons.
Advocate General Recommended Registration of FIR
Although the Advocate General, the Additional Advocate General and the Director General of Prosecution recommended immediate registration, the Home Secretary directed the State Police Chief to entrust the case to the Crime Branch and constitute an SIT for a preliminary enquiry. Therefore, the State Police Chief issued an order accordingly.
Consequently, the petitioner, Shri K. M. Shajahan, approached the High Court to quash it and to direct registration of an FIR without any preliminary enquiry.
Arguments of K M Shajahan and ED
The petitioner and the ED argued that there was no scope for a preliminary enquiry. The petitioner added that the SIT had been formed without a Vigilance member, which, under a Government Order, could not be done without a Cabinet decision.
The ED’s counsel said the information concerned offences found during its investigation, and that these predicate offences needed investigation by the State Police or Vigilance, as appropriate.
The Advocate General argued that a preliminary enquiry was desirable because the ED is only an information-gathering agency, not an investigating agency like the police.
Kerala High Court’s Decision
The Court framed the question as whether the State Police must register an FIR without a preliminary enquiry when the ED passes on information under Section 66(2) of the PMLA. It held as follows:
- A preliminary enquiry is not mandatory if the information discloses a cognizable offence. Where one is conducted, its scope is limited to whether the information prima facie discloses a cognizable offence, not to verifying its truthfulness.
- A preliminary enquiry is required only where the information does not disclose a cognizable offence but needs verification. Where it clearly discloses one, the police have no discretion to hold an enquiry before registering an FIR.
- Lalita Kumari v. Government of U.P. [AIR 2014 SC 187] does not make a preliminary enquiry mandatory in every case, but it obliges the police to register an FIR when information prima facie discloses a cognizable offence.
In short, when information under Section 66(2) discloses an offence for which only the State Police can register an FIR, they must do so. Where it lacks sufficient grounds for an FIR, the police may conduct a preliminary enquiry, without registering an FIR, to collect additional information.
