ED's CMRL-Exalogic probe findings warrant state police investigation

In a significant development in the CMRL-Exalogic case, a court has confirmed that predicate offences identified during the Enforcement Directorate's investigation under the Prevention of Money Laundering Act (PMLA) merit direct intervention by state police authorities. The court's observation underscores that no preliminary enquiry is necessary before registering a First Information Report (FIR) to probe the alleged offences that emerged from the ED's probe. The unified position taken by both the ED and the petitioner before the court strengthened the case for expedited investigation without the standard procedural delays. This ruling establishes an important precedent in cases where financial irregularities are detected through central agency probes, allowing for seamless transition to state-level criminal investigations. The decision reflects the judiciary's recognition that preliminary enquiries may be circumvented when substantive evidence of criminal conduct has already been documented during money laundering investigations. The case is expected to proceed to the next phase with state police taking up the investigation based on the findings already compiled by the ED.