Kerala HC to weigh prosecution sanction in SNDP Yogam microfinance scam
Kerala High Court will decide if sanction is needed to prosecute the accused in the SNDP Yogam microfinance scam, hearing differing views from the department and Vigilance.
The Kerala High Court is set to examine whether prosecution sanction is required under the Prevention of Corruption Act, 1988, to proceed against those accused in the Sree Narayana Dharma Paripalana (SNDP) Yogam microfinance scam.
The question arose during the hearing of a petition seeking the constitution of a Special Investigation Team to probe the alleged misappropriation of loans disbursed by the Kerala State Backward Classes Development Corporation to the Yogam between 2003 and 2014 for the benefit of backward communities.
On Friday, the Backward Classes Development Secretary told Justice A. Badharudeen that the accused, including SNDP Yogam general secretary Vellappally Natesan, were private parties. Since they were not government officials, the department maintained, no prosecution sanction was necessary.
The petitioner, M.S. Anil of Alappuzha, however, argued that sanction was mandatory. Any office-bearer or employee of an educational, scientific, social, cultural or other institution receiving financial assistance from the Union or a State government is treated as a public servant under the Act, he submitted.
The Special Public Prosecutor for Vigilance supported the petitioner's position, telling the court that sanction was indeed required and that the Secretary's view was incorrect.
In light of the disagreement, the court directed the investigating officer to produce copies of the final reports filed in order to obtain prosecution sanction from the department. The matter will be taken up again on September 22, 2026.