The Supreme Court on Monday stayed the trial proceedings against Bishop Dharmaraj Rasalam, former moderator of the Church of South India (CSI) and ex-head of the South Kerala Diocese, who faces allegations of money laundering linked to admissions at a Kerala medical college.
A bench comprising Justices Vikram Nath and Sandeep Mehta issued a notice to the Enforcement Directorate (ED), seeking its response to Rasalam’s appeal challenging the ongoing prosecution. Until then, the Court has put the trial on hold.
Senior advocate S. Muralidhar, appearing for Rasalam, argued that allowing the trial to continue before his appeal is heard would cause “irreversible prejudice”. The bench accepted this contention and paused the proceedings.
Rasalam is accused of collecting ₹7.225 crore from parents of prospective students in exchange for assuring admission to Dr Somervell Memorial CSI Medical College, Karakonam. According to the ED, parents were directed to hand over money through intermediaries in the college administration, though several candidates allegedly did not receive admission despite payments.
The Kerala High Court, in March, had refused to quash the ED probe, noting that material collected by the agency warranted further investigation. ED documents submitted to the court claimed that at least 28 candidates or parents were asked to pay large sums and that part of the money was diverted to infrastructure projects and to the South Kerala Diocese.
Rasalam has consistently denied the charges, stating he only guided parents who approached him and was not involved in administrative or financial dealings. His legal team also highlighted that the Kerala Police crime branch earlier found no substance in the allegations — a finding the High Court chose not to rely upon.
The case drew attention in July 2022, when the ED detained Rasalam at Thiruvananthapuram airport as he attempted to fly to the UK. He has been barred from leaving India since, as the ED maintains that the case points to deeper financial irregularities within the diocese.