Kodakara hawala case: Court orders joint trial with ED; accused to appear in 2026

The Additional Sessions Court in Irinjalakuda has transferred the Kodakara hawala case, being investigated by the Kerala Crime Branch, to the Special Court constituted under the Prevention of Money Laundering Act (PMLA) in Kaloor, Ernakulam, for a joint trial with the case already filed by the Enforcement Directorate (ED). The accused have been directed to appear before the PMLA court on November 19, 2026.

The order brings the State police investigation and the Central agency's money-laundering case before a single court, a step the ED had sought so that the two proceedings could be heard together rather than separately.

The case

The Kodakara hawala case arises from an alleged highway robbery at Kodakara in Thrissur district on April 3, 2021, three days before the Kerala Assembly elections. According to the police, ₹3.50 crore was being transported to Ernakulam for use in an election campaign when a gang staged a fake accident to intercept the vehicle and looted the money. The police arrested 23 persons in connection with the incident and recovered ₹1.58 crore, described as part of the stolen amount.

Why the ED sought a transfer

In its petition, the Enforcement Directorate contended that the trial of the scheduled offence — the case registered by the State police — and the PMLA case should be conducted simultaneously. It sought the transfer under Section 44(1)(c) of the PMLA. Special Public Prosecutor M.J. Santhosh appeared on behalf of the ED. It is learnt that the ED is set to move applications in all courts dealing with cases involving the PMLA to the Special PMLA Court.

The State police's objection

The State police opposed the move, arguing that transferring the case would amount to an encroachment by the ED on the powers of the State government. In an objection filed before the Irinjalakuda court on December 5, 2025, Deputy Superintendent of Police V.K. Raju, the investigating officer in the hawala case, asserted that the trial before the sessions court was at an advanced stage, and that any move to transfer the case at the instance of a third agency with no investigative role in the matter would cause serious prejudice to the prosecution.

He further submitted that the offences involved in the case and those alleged by the Central agency were "separate and distinct". The objection petition also argued that Section 44 of the PMLA does not authorise a parallel investigation or interference with the lawful jurisdiction of the State police.

What the transfer means

Under the PMLA, an offence such as the one registered by the State police is treated as a "scheduled offence" — a precursor that enables the ED to investigate the alleged laundering of its proceeds. Section 44 deals with the jurisdiction of special courts and, in certain circumstances, permits the scheduled offence and the money-laundering case to be tried by the same court.

With the transfer order, the accused, who were earlier appearing before the sessions court in Irinjalakuda, will now have to appear before the PMLA court in Kaloor. The court has fixed November 19, 2026, for that appearance, and further hearings are expected to decide the schedule for the joint trial.

The case, which concerns money allegedly meant for an election campaign, has drawn wide public attention in Kerala. The decision to club the trial with the ED's case does not by itself determine the merits of either case; it settles only the question of which court will hear them. Both matters remain sub judice, and an accused is presumed innocent unless convicted.