The Kerala High Court has directed the Additional Chief Secretary, Backward Classes Development department, to consider the request of the special investigation team (SIT) for prosecution sanction in the microfinance scam involving SNDP Yogam general secretary Vellappally Natesan.
Justice A. Badharudheen was considering a report of lead investigating officer S.Sasidharan enumerating the status of the 124 cases registered in connection with the alleged misappropriation of loans disbursed to the SNDP Yogam between 2003 and 2014 by the Kerala State Backward Classes Development Corporation. The loans were intended for the welfare of backward communities under the microfinance programme.Â
Representing the Vigilance department, Special government pleader P.K. Sajeevan informed the court that eight instances of misappropriation were found in the Pulpally, Mananthavady, Ranni, Kunnathunadu, Kanayannoor, Chittoor and Taliparamba units of the community organisation.
The Vigilance and Anti-Corruption Bureau Director had given the go-ahead for seeking prosecution sanction in three of these cases. Final verification was under way in the rest of the cases to ensure that investigation was complete in all respects. The court directed Mr. Sasidharan to finalise the process of sanction within seven days and finish verification within 20 days.
The accused in the three cases in the Pulpally, Ranni and Mananthavady units were mentioned in the report, which included Mr. Natesan, M.N. Soman, K.K. Mahesan, K.S. Sabu, Vasanthkumar, T. Prabhakaran, and R. Purushothaman.
The court noted that of the 124 cases, 19 were pending with the SIT and factual reports in 52 cases were being reviewed by Mr. Sasidharan. Further action had been dropped with the approval of the VACB Director in 30 cases, eight cases had been recommended for prosecution, six accepted by the respective vigilance courts, and final reports in nine cases were pending before them.
Published – August 14, 2026 08:37 pm IST
