High Court directs administrative review of prosecution sanction in SNDP loan cases
The Kerala High Court has directed the Additional Chief Secretary of the Backward Classes Development department to consider, within a limited time, a request from the Special Investigation Team (SIT) for prosecution sanction in connection with alleged misappropriation of microfinance loans disbursed to the SNDP Yogam.
Justice A. Badharudheen was hearing a status report prepared by lead investigating officer S. Sasidharan that set out the present position of 124 cases registered in relation to loans provided by the Kerala State Backward Classes Development Corporation under its microfinance programme between 2003 and 2014. The loans were meant for welfare and livelihood support of backward communities, the court record shows.
Representing the Vigilance department, Special Government Pleader P.K. Sajeevan informed the court that investigations had uncovered instances of irregularities in several local units of the community organisation. The SIT report identified concerns in the Pulpally, Mananthavady, Ranni, Kunnathunadu, Kanayannoor, Chittoor and Taliparamba units.
The Vigilance and Anti-Corruption Bureau (VACB) Director has already authorised seeking prosecution sanction in three of the matters, the court was told. The judge instructed the investigating officer to complete the process to obtain sanction within seven days and to finish outstanding verification within 20 days.
| Case status | Number |
|---|---|
| Registered cases | 124 |
| Pending with SIT | 19 |
| Under review by LIO | 52 |
| Further action dropped (VACB approval) | 30 |
| Recommended for prosecution | 8 |
| Accepted by vigilance courts | 6 |
| Final reports pending before courts | 9 |
The SIT report named several accused in the three cases for which prosecution sanction has been cleared, including Vellappally Natesan, the general secretary of SNDP Yogam, and others listed as M.N. Soman, K.K. Mahesan, K.S. Sabu, Vasanthkumar, T. Prabhakaran and R. Purushothaman. The court record indicates their mention specifically in the matters relating to the Pulpally, Ranni and Mananthavady units.
What the court directions mean for the probe
The High Court order effectively places a short, enforceable timetable on administrative steps required before formal prosecution can proceed. Prosecution sanction — a statutory requirement in certain corruption and public servant-related offences — must be processed by the relevant administrative authority before criminal trials can begin. By directing the Additional Chief Secretary to consider the SIT request, the court has signalled urgency in resolving procedural stages that have so far delayed finality in several matters.
Court records show that the handling of the 124 registered cases has followed different trajectories: while 30 matters were closed with the VACB Director's approval, 8 were recommended for prosecution and six were accepted by vigilance courts. The remaining files are at various stages — pending with the SIT, under verification, or with final reports queued in courts.
- Immediate action: Investigating officer to obtain sanction within seven days and complete verification in 20 days.
- Scope: Cases relate to alleged misappropriation of microfinance loans disbursed from 2003–2014.
- Named accused: Include Vellappally Natesan and six others in three units where sanction was authorised.
The sequence of administrative approvals and judicial scrutiny will determine how swiftly individual matters move to trial. The consolidated status presented to the court shows a mixture of final reports, dropped cases and ongoing inquiries, reflecting the complexity of a long-running probe that spans more than a decade.
Given the social role of the SNDP Yogam and the targeted nature of the microfinance programme for backward communities, the progress and transparency of investigations carry local sensitivity. The court's direction provides a defined procedural window for authorities to act, after which the criminal justice process may advance in those matters where sanction is granted.
The record of the court hearing was published on August 14, 2026. No additional statements from SNDP Yogam office-bearers or VACB spokespeople were included in the court file made available with the report.
The SIT continues to manage the detailed criminal inquiries, while vigilance courts and the VACB remain engaged in the adjudicatory and administrative steps necessary for prosecutions to proceed.
