Kochi, November 6, 2026 (Yes Punjab News)
The Kerala High Court on Friday ruled that prior government sanction is not required to prosecute accused persons, including SNDP Yogam General Secretary Vellappally Natesan and former Managing Directors of the Kerala State Backward Classes Development Corporation (KSBCDC), in the alleged Rs 15.85 crore microfinance scam.
Justice A. Badharudeen passed an interim order on the question of prosecution sanction while hearing petitions seeking an effective investigation into the alleged fraud. The court stated, “Interim order passed, holding that no prosecution sanction is required.”
The matter will be heard again on November 17.
The case concerns the alleged misappropriation of Rs 15.85 crore released under a microfinance scheme intended to benefit members of marginalised communities. The KSBCDC had sanctioned the amount as loans to the Sree Narayana Dharma Paripalana (SNDP) Yogam, which is accused of diverting the funds.
The Vigilance and Anti-Corruption Bureau (VACB) registered the case in 2016. Natesan and other SNDP Yogam office-bearers were among those accused, while the alleged involvement of former KSBCDC Managing Directors also came under scrutiny.
The High Court was hearing petitions filed in 2020 seeking an investigation by a Special Investigation Team headed by an efficient officer. The question of prosecution sanction had delayed further proceedings against some of the accused.
In August this year, the investigating officer informed the court that the involvement of several accused had been identified in eight cases and that government sanction was required to proceed against certain officials.
The state government, however, maintained that prior sanction was unnecessary. State Attorney Anoop V. Nair argued that SNDP Yogam was not a government nodal agency and did not fall within the definition of a public servant under the Prevention of Corruption Act. The petitioners had taken the opposite position.
The court’s interim order addresses the requirement of prior sanction, allowing prosecution to proceed without it. The petitions seeking an effective investigation will be taken up again on November 17.
FOLLOW NOW
