The Kerala High Court has reserved its orders on the question of prosecution sanction for the accused, including Sree Narayana Dharma Paripalana (SNDP) Yogam general secretary Vellappally Natesan, in the SNDP microfinance scam case.
Justice A. Badharudeen noted that there was a legal issue to be considered regarding prosecution sanction after recording the State government’s stand that sanction was not required to prosecute the accused in the matter.
The court was considering a petition by M.S. Anil of Alappuzha seeking the constitution of a Special Investigation Team to probe the alleged misappropriation in loans amounting to ₹15.85 crore disbursed to the SNDP Yogam under a microfinance scheme by the Kerala State Backward Classes Development Corporation (KSBCDC).
The Special Government Pleader for Vigilance maintained that, as per the Prevention of Corruption Act, 1988 (PC Act), the accused fell under the category of public servants and required prosecution sanction from the authority with the power to terminate them from service. In this case, the authority is the Backward Classes Development Department (BCDD).
The BCDD had earlier stated that government sanction was not required to prosecute the accused in this matter. The State Attorney argued that the SNDP Yogam was classified as an NGO for the microfinance scheme and not as a nodal agency of the government. He contended that there was no government order to this effect either.
However, the petitioner, M.S. Anil of Alappuzha, pointed out that there had been no challenge to the fact that the KSBCDC, a government agency, had disbursed the funds for the scheme through the SNDP Yogam.
He argued that under the PC Act, sanction was required to prosecute the accused since any office-bearer or employee of an educational, scientific, social, cultural, or other institution receiving financial assistance from the Central or State government was classified as a public servant under the Act.
Published – September 22, 2026 04:26 pm IST
