Thiruvananthapuram: K A Ratheesh, the first accused in the Kerala State Cashew Development Corporation corruption case and former Managing Director of the corporation, has resigned as Secretary of the Kerala Khadi and Village Industries Board following criticism from the Kerala High Court over his continued tenure in key government positions.

Chief Minister V D Satheesan sought Ratheesh's resignation after the High Court strongly questioned why an official facing prosecution in a corruption case continued to hold senior posts in multiple government organisations.

Earlier, Justice A Badarudeen had expressed displeasure over the government's decision to allow Ratheesh to remain in office despite being the first accused in a corruption case for which the state had granted the CBI sanction to prosecute him. The court observed that the government should examine how a person accused in a serious corruption case was allowed to continue in such crucial positions.

Apart from serving as Secretary of the Kerala Khadi and Village Industries Board, Ratheesh was also the Managing Director of ROOPTRONICS (Kerala State Rural Women Electronics Industrial Cooperative Federation Limited) and Chief Executive Officer of the Kerala Khadi Workers Welfare Fund Board. He is also expected to lose his post as ROOPTRONICS Managing Director.

According to the CBI, the accused caused losses worth crores of rupees to the Kerala State Cashew Development Corporation by violating rules governing cashew imports between 2006 and 2015. Ratheesh has been named the first accused in the case, while INTUC state president R Chandrasekharan is the third accused.

Although the CBI had sought the state's sanction to prosecute both accused, the previous government withheld permission. However, after the High Court intervened and initiated contempt proceedings, the new government granted sanction for their prosecution.