Kochi: By way of an interim order, the High Court on Wednesday stayed the judicial inquiry against Enforcement Directorate (ED) officials who had been probing the gold smuggling case.
This is the second setback for the CPM-led government on the same issue.
The decision comes as a minor victory for the ED who had long contended that the State government had overstepped its jurisdiction.
It portrayed the government's efforts as an attempt to stifle the ongoing investigation against those who had abetted the money-laundering aspect of the crime that primarily involved smuggling gold via the diplomatic channel of the UAE Consulate in Thiruvananthapuram during the 2019-20 period.
The ED pointed out that the former Principal Secretary to the Chief Minister, M Sivasankar, was the fifth accused in the case.
The State government had constituted a judicial inquiry against the central investigation agencies including the Customs, the ED, and the Income Tax Department in March.
The Commission chaired by Judge KV Mohanan was tasked to report to the government on matters including the action to be taken against those involved in the conspiracy.
However, legal experts had pointed out that the State's move was against the Commissions of Inquiry Act of 1952.
Earlier, the High Court had stayed the Crime Branch's probe against the national agency.
The Crime Branch had alleged that Swapna Suresh was coerced to give a statement against Chief Minister Pinarayi Vijayan.
It had also quashed two FIRs registered by the State police against the ED officials on the charge of coercing the accused to give false statements against the Chief Minister and his office.
Swapna, a former employee of the UAE Consulate in Thiruvananthapuram, is the prime accused in the case relating to the smuggling of 30 kg of gold worth Rs 14.82 crore in diplomatic baggage and is now under judicial custody since her arrest.
According to one FIR, the ED officials who questioned Swapna Suresh over the gold smuggling case on August 12 and 13, 2020 had forced her to give false statements against the chief minister in order to implicate him.
Pinarayi abused power, the court retaliated: BJP State President
BJP State President K Surendran hailed the High Court decision as a big blow to the Pinarayi Vijayan government.
"Pinarayi Vijayan has abused the power of his office and the court has retaliated," Surendran's statement read.
"The allegations that the Chief Minister smuggled dollars during his foreign trip is a serious one. The groups behind the gold smuggling cases unearthed at Thiruvananthapuram and Karipur has close ties to top CPM leaders," the statement added.
Surendran urged the Judicial Commission to voluntarily withdraw from the inquiry without being "the scourge of the ruling political party".
Government's efforts to sabotage investigation: VD Satheesan
Opposition leader VD Satheesan has termed the High Court's decision as a retaliation against the government for acting illegally.
He alleged that the government's efforts were to sabotage the investigation.