Kerala High Court Adjourns Bail Plea in Cashew Trader's PMLA Case
The Kerala High Court has adjourned the bail petition filed by Kollam-based cashew businessman Aneesh Babu in a case registered under the Prevention of Money Laundering Act (PMLA). The court's decision came after the Enforcement Directorate (ED) sought an additional week to file its detailed objections against the bail application.
Court Proceedings and Allegations
The bench of Justice Kauser Edappagath heard the matter on Tuesday and subsequently adjourned it to February 19 for further consideration. The central allegation against Babu revolves around his business dealings with local cashew traders. According to the prosecution, Babu accepted substantial advance payments from multiple traders after promising to supply imported cashew nuts at rates significantly lower than prevailing international market prices.
The critical accusation is that Babu failed to honor these agreements, thereby allegedly cheating the traders who had placed their trust and capital in his promises. This alleged breach of contract formed the basis of the initial criminal complaint that eventually triggered the money laundering investigation.
Legal Framework and Arrest
The Enforcement Directorate initiated proceedings under the PMLA after taking cognizance of a First Information Report (FIR) previously registered by local police authorities. The ED cited the commission of scheduled offences as grounds for launching the money laundering probe. Following this investigation, Babu was formally arrested by ED officials on January 14, 2026, leading to his subsequent approach to the High Court seeking bail relief.
Parallel Bribery Allegations Against ED Officials
In a dramatic parallel development, the Vigilance and Anti-Corruption Bureau has registered a separate bribery case against certain Enforcement Directorate officials. This case stems from a formal complaint filed by Aneesh Babu himself, who has alleged that these officials demanded a staggering Rs 2 crore bribe from him to stall the ongoing PMLA proceedings against him.
Babu has since approached the High Court with an additional petition seeking a Central Bureau of Investigation (CBI) probe into these bribery allegations. His petition contends that no proper or impartial investigation has been conducted so far by the vigilance department regarding his serious complaints against the ED officials. This petition remains pending before the court alongside the bail application.
Legal Implications and Next Steps
The adjournment grants the Enforcement Directorate the requested time to prepare and submit its comprehensive objections to Babu's bail plea. Legal experts suggest that the court will likely examine multiple factors when the matter is heard on February 19, including the strength of evidence, flight risk considerations, and the potential for witness tampering.
The simultaneous pendency of the bribery complaint petition adds considerable complexity to the legal proceedings. The High Court may eventually need to determine whether the allegations against ED officials have any bearing on the merits of the PMLA case itself or the appropriateness of granting bail at this juncture.
This case highlights the intricate interplay between economic offences, enforcement agency actions, and counter-allegations of corruption within India's legal framework. The business community in Kerala's cashew sector is closely monitoring developments, as the outcome could have implications for trade practices and regulatory oversight in the region.
