Kerala High Court holds an ED communication under the PMLA can take the place of a preliminary inquiry

10 October 2026

Justice A. Badharudeen of the Kerala High Court held on 9 October 2026 that a communication from the Enforcement Directorate under Section 66(2) of the Prevention of Money Laundering Act can take the place of a preliminary inquiry report.
The court was hearing a petition by K.M. Shahjahan seeking registration of a case under the Prevention of Corruption Act over transactions between the companies CMRL and Exalogic.
The court said the communication contained enough material to disclose cognisable offences, so the receiving agency had no discretion to hold a preliminary inquiry instead of registering a first information report.
It quashed as illegal the decision to conduct a preliminary inquiry through the special team constituted by the State Police Chief.
The court directed the Director of the Vigilance and Anti-Corruption Bureau to register a first information report on the basis of the communication and to complete the investigation without delay.
It also directed the Director General of Police and the special team to hand over all records relating to the communication.