Kerala HC Division Bench Stays Orders That Cleared Cashew Scam Prosecution

A Division Bench of the Kerala High Court has intervened in the ₹600-crore cashew import scam case, staying interim orders issued by a Single Bench. These orders had formed the basis for the state government's sanction to prosecute the accused under the Prevention of Corruption Act.

The stay was granted by a bench comprising Justices K. Natarajan and Johnson John while hearing appeals filed by two key accused: R. Chandrasekharan, former chairman of the Kerala State Cashew Development Corporation (KSCDC), and K.A. Ratheesh, its former managing director.

The contested orders from the Single Bench had quashed two government orders that denied prosecution sanction. The same bench had also upheld a third government order that granted sanction and directed the Central Bureau of Investigation (CBI) to move forward with prosecution.

In their appeal, the two former officials argued that the Single Bench had repeatedly struck down the orders denying sanction. This, they contended, effectively pushed the sanctioning authority into issuing a favourable order for the CBI. They also challenged the Single Bench's jurisdiction, stating that reviewing the government orders within a contempt petition exceeded its judicial authority.

Complainant Kadakampally Manoj, who had alleged corruption in the KSCDC's import and purchase of cashew, opposed the appeals and questioned their maintainability.

The Division Bench's latest order follows its August 2026 decision to admit the petitions. At that time, the bench found merit in the argument that the earlier rulings had set aside the state's refusal of sanction without giving the petitioners a proper hearing.

The state government had refused sanction on three separate occasions before finally granting it for the CBI probe on July 6, 2026.