New Delhi — The Supreme Court on Monday paused the ongoing money-laundering trial against Bishop Dharmaraj Rasalam, former moderator of the Church of South India (CSI) and ex-head of the South Kerala Diocese. The Court also issued a notice to the Enforcement Directorate (ED) seeking its response to the bishop’s appeal challenging the prosecution.

Background of the Case
Rasalam faces allegations of collecting ₹7.225 crore from parents of prospective medical students in exchange for promising admissions at the Dr. Somervell Memorial CSI Medical College, Karakonam. Parents were reportedly directed to pay the money through intermediaries in the college administration. Many students allegedly never gained admission despite paying hefty sums.

The ED claims that significant portions of the money were used for infrastructure at the college and also diverted to the South Kerala Diocese, arguing that Rasalam’s involvement was “well-established” and actionable under the Prevention of Money Laundering Act (PMLA).

Legal Proceedings So Far

• In March 2025, the Kerala High Court had refused to quash the ED’s probe, holding that the material collected warranted further investigation.
• Rasalam’s lawyers have consistently denied wrongdoing, arguing that he did not handle day-to-day administration and merely advised parents. They highlighted that a Kerala Police crime branch investigation had previously found the allegations unsubstantiated, though the High Court declined to rely on that finding.
• In July 2022, the ED had detained Rasalam at Thiruvananthapuram Airport before he could board a flight to the UK and restricted his travel.

Supreme Court Decision
Senior advocate S. Muralidhar urged the SC to stay the trial to prevent “irreversible prejudice” until the legal challenge is decided. The bench of Justices Vikram Nath and Sandeep Mehta agreed, keeping the trial proceedings in abeyancewhile awaiting the ED’s response.

The case highlights tensions between ongoing federal investigations under PMLA and claims of procedural fairness by high-ranking institutional figures.