Kochi: The Kerala State Government has suffered a significant setback in the ongoing Gold Smuggling case, as the Division Bench of the High Court dismissed its appeal against a Single Bench order that stayed the appointment of a Judicial Commission. The commission, constituted by the state government, was intended to investigate officials of the central agency, the Enforcement Directorate (ED).
The ED had previously sought a stay on the judicial inquiry against its officials until the Gold Smuggling case concludes. The agency argued in court that, according to the 1952 Commissions of Inquiry Act, the state government lacks the authority to form such a commission against a central agency. The ED further contended that the Chief Minister’s decision to appoint the commission amounted to an abuse of power.
During the legal proceedings, the ED asserted that the commission held no legal validity and accused the state government of attempting to sabotage the Gold Smuggling case. Conversely, the state government maintained that the ED’s petition against the judicial commission was not maintainable. However, the court rejected the state’s argument and issued an interim order to stay the commission’s appointment. It is this interim order that the Division Bench has now upheld, dismissing the state government’s appeal.
The judicial inquiry commission was headed by retired Justice V.K. Mohanan. The state government had argued that the ED, being merely a department of the central government, could not file such a petition. However, the Single Bench rejected this contention, a decision that has now been affirmed by the Division Bench comprising Justices S.A. Dharmadhikari and V.M. Shyamkumar.