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Kerala HC Pulls Up Govt Over Delay in SNDP Microfinance Fraud Case, Questions Selective Prosecution

Kochi, September 11, 2026 (Yes Punjab News)

The Kerala High Court on Friday came down heavily on the state government over the delay in granting prosecution sanction in the long-pending SNDP microfinance fraud case, questioning whether repeated lapses were deliberate attempts to delay the proceedings.

Justice A. Badharudeen expressed strong displeasure after the Additional Chief Secretary of the Backward Classes Development Department, who appeared before the court in person, informed it that she had received the case files only on Thursday.

The court had directed the government last month to consider the issue of granting prosecution sanction. However, the Special Public Prosecutor for Vigilance told the court that a communication gap had resulted in the files being placed before the Additional Chief Secretary only late Thursday evening.

The court was subsequently informed that the files had been transferred to the officer and that action would be taken within a week.

Justice Badharudeen made it clear that the government could not again cite non-receipt of the files as a reason for the delay. He directed the authorities to take a decision before the matter is listed again on September 18.

The court warned that if the order was not produced at the next hearing, the Chief Secretary would have to appear personally.

Justice Badharudeen also rejected the state’s explanation that the delay was the result of a mistake. While observing that mistakes could happen to anyone, the judge said repeated lapses could not continue to be dismissed as errors and could raise questions about whether there were deliberate actions driven by ulterior motives.

The court also questioned what it perceived as a possible selective approach to prosecution.

“Why are you saving certain accused from prosecution and moving against certain accused that you are not in good terms with?” the judge asked the state.

Justice Badharudeen said such an approach could not be accepted, particularly in serious cases involving people holding public positions, and described the repeated delays as “dilatory tactics”.

The case concerns alleged irregularities in a microfinance scheme associated with the SNDP Yogam. The Vigilance and Anti-Corruption Bureau had registered multiple cases in connection with the allegations involving SNDP office-bearers, including General Secretary Vellappally Natesan, as well as former managing directors of the Kerala State Backward Classes Development Corporation.

The High Court is hearing two petitions filed in 2020 seeking an investigation by a Special Investigation Team headed by an efficient officer.

The matter will be taken up again on September 18.

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