SNDP microfinance scam: Kerala HC directs govt to consider SIT’s prosecution sanction requests

The Kerala High Court has directed the Additional Chief Secretary of the Backward Classes Development Department to consider, in a time-bound manner, the prosecution sanction requests submitted by the Special Investigation Team (SIT) probing the ₹15.85-crore SNDP microfinance scam.

The case involves alleged misappropriation of government funds under the Micro Finance Scheme. A crime was registered in 2016, with allegations against office-bearers of the SNDP Yogam, including Vellappally Natesan, and former Managing Directors of the Kerala State Backward Classes Development Corporation Ltd (KSBCDC).

Justice A Badharudeen passed the interim order on Friday after interacting with investigating officer S Sasidharan IPS, who appeared in person following an earlier direction of the court.

After examining a detailed progress report, the court noted that final reports could be filed in at least eight of the 124 cases registered in connection with the scam.

The court was hearing two petitions filed in 2020 seeking the appointment of a Special Investigation Team headed by an efficient officer to probe the case registered by the Vigilance and Anti-Corruption Bureau (VACB). Over the course of the proceedings, the court had granted several extensions to the investigating officers.

On May 20, the court had directed the investigating officer to complete the probe by June 20 and submit reports in all the cases. During Friday’s hearing, the court expressed displeasure over the SIT’s failure to comply with several earlier directions, warning that it was “on the verge of contempt proceedings.”

The court also orally observed that the investigation appeared to be progressing slowly because of the identity of the accused. The public prosecutor, however, submitted that although there had been little progress over the past decade, steps would now be taken to ensure that those responsible for corruption were not spared.

The investigating officer informed the court that final reports in five other cases were undergoing rectification and sought 20 days to complete the process and submit them for prosecution sanction. The court directed the officer to complete the exercise within the stipulated 20 days.

The court also recorded the submission that requests for prosecution sanction would be processed in a time-bound manner.
The case will be considered next on September 10.
(With LiveLaw inputs)