Cashew Corp Scam: Kerala High Court Defers Industries Dept Secretary's Personal Appearance In Contempt Case Till Disposal Of Appeal

The Kerala High Court on Friday (29 May) directed the Single Judge of the Court to defer the personal appearance of the Principal Secretary, Industries Department (Cashew) of the State Government in a contempt case till the disposal of the appeal against the Single Judge's order.

The contempt case was initiated by the Court for repeatedly denying sanction for the Central Bureau of Investigation (CBI) to prosecute allegedly corrupt ex-officials of the State Cashew Development Corporation (KSCDC).

An appeal was filed against the Single Judge's order. The Division Bench of Justice K. Natarajan and Justice Johnson John while considering the appeal directed the Single Judge to defer appearance of Principle Secretary till disposal of the appeal. 

Earlier, the Division Bench had questioned the locus standi of the State in filing an appeal against the Single Judge's order. 

During the last hearing, the Single Judge had deferred the appearance of the Principal Secretary till June 01, since it was submitted that an appeal against the order directing personal appearance is pending before the Division Bench. 

Today, when the matter was taken up, the respondent raised various objections regarding the writ appeal against the order of appearance. 

The Court thus directed the respondent to file a counter affidavit on the appeal detailing the objections regarding locus standi and maintenance of the appeal. 

It was also brought to the attention of the Court that the Single Judge had only deferred appearance of the Principal Secretary till 01 June. Hence the Division Bench orally ordered,

"The government pleader submits that the single Judge of this Court directed the appellant to appear before the Court on 01 June....considering the same hereby direct the Single Judge of this Court to not process the personal appearance of the appellant till the disposal of this case."

The contempt plea was moved after the State declined nod for CBI prosecution, despite a previous direction of the High Court in Kadakampally Manoj v. State of Kerala and Ors. setting aside State's first order refusing to grant sanction in the matter.

During the pendency of the contempt proceedings, the Court had passed an interim order setting aside the second order refusing sanction and directing the State to again consider CBI's request. Later, on 29.10.2025, the public prosecutor submitted that again, order was passed, refusing sanction for a third time.

The order refusing sanction has been set aside by the Court.

The CBI had sought sanction for prosecuting former officials of the KSCDC including the former Chairman R. Chandrasekharan and former Managing Director K.A. Ratheesh in a corruption case. It is alleged that they entered into criminal conspiracy with one Jaimon Joseph and dishonestly awarded contracts to its firm M/s JMJ Traders, causing losses of several crores to the Corporation.

The appeal is posted on 08 June for further consideration. 

Case Title: Mohammed Hanish v. Kadakampally Manoj

Case No: WA 1093/ 2026 in Con.Case(C) 908/2025

Counsel for Respondent: D. Anil Kumar