Kerala gold smuggling case: Vijayan govt suffers jolt as HC upholds stay on judicial commission

Kochi, Sep 26
The Kerala government suffered a setback on Friday when a Division Bench of the High Court dismissed its appeal challenging an earlier order that had stayed the appointment of a judicial commission to probe Enforcement Directorate (ED) officials in the sensational gold smuggling case.

The state had constituted the judicial commission to investigate the conduct of Central agency officials during their probe into the case.

However, the Single Bench had stayed the appointment, prompting the government to move the Division Bench.

With the appeal now dismissed, the stay on the commission’s proceedings will continue.

The Enforcement Directorate, which opposed the judicial commission, argued that no inquiry against its officers could proceed while the gold smuggling case itself remained under investigation.

The agency also cited provisions of the Commissions of Inquiry Act, 1952, pointing out that a state government has no jurisdiction to set up a commission to investigate a Central agency.

It further contended that the move by Chief Minister Pinarayi Vijayan to appoint the body amounted to abuse of power and lacked any legal validity.

The ED alleged before the court that the state government’s attempt was aimed at derailing the ongoing probe into the gold smuggling scandal.

The state government, on the other hand, maintained that the ED’s petition was not legally sustainable and insisted that the commission was validly appointed.

However, the court rejected this stance and upheld the interim order staying the commission’s functioning.

The development is a significant blow to the Kerala government, which has repeatedly accused the Central agencies of overreach in the politically sensitive gold smuggling case.

With the Division Bench verdict, the state is left with limited legal options as the ED continues its investigation.

The gold smuggling case, which first surfaced in 2020 with the seizure of smuggled gold through diplomatic channels, remains one of the most politically charged cases in the state, drawing sharp confrontations between the state and central agencies.