Kochi: A public interest litigation (PIL) has been filed in the Kerala High Court alleging large-scale corruption in the import of raw cashew nuts (RCN) by the Kerala Cashew Board Ltd (KCB). The petitioner claimed that despite filing a complaint with the Vigilance and Anti-Corruption Bureau (VACB), no action has been taken so far.

The Division Bench of Justice Devan Ramachandran and Justice Syam Kumar V M noted the petitioner’s submission that there was a likelihood of removal of the imported cashew stock by the Kerala State Cashew Development Corporation Ltd. (KSCDC). However, the court observed that if such a cause existed, the competent authorities of the state could intervene.

KCB, a special-purpose vehicle of the state government, was set up to procure raw cashew nuts from India and abroad for supply to cashew processing units in Kerala. In December 2023, the government directed KSCDC and the Kerala State Cashew Workers Apex Industrial Co-operative Society (CAPEX) to purchase imported RCN only from KCB.

According to the plea, KCB awarded contracts worth USD 3.99 million (₹33.9 crore) each to M/s Olam International Ltd., Singapore, and M/s ADT Trading FZE for the supply of Ghana-origin cashew nuts of the 2025 crop. However, KSCDC directors allegedly found old and damaged nuts being passed off under the Ghana 2025 tag. Emails sent by directors to KSCDC’s chairman, highlighting the issue and urging government intervention, have also been produced in court.

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The petitioner alleged that complaints to VACB and the state government went unheard, forcing him to approach the court. The PIL seeks a vigilance probe into the alleged corruption and action against the suppliers who provided inferior quality cashews.

The case will be heard next on September 8.
(With LiveLaw inputs)

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