Cashew Corp Scam: Kerala High Court Grants State Time To Produce Sanction Order To Prosecute Corrupt Ex-Officials

The Kerala High Court was today (July 2) informed by the Advocate General representing the State that sanction order has been decided to be passed in accordance with the Court's direction to prosecute the alleged corrupt ex-officers of the State Cashew Development Corporation (KSCDC).

Justice A. Badharudeen today recorded the submission of AG Jaju Babu that government has decided to give sanction and that time is required to ensure the accuracy of the same.

"The learned Advocate General appeared and submitted that in this matter, the Government decided to give sanction in obedience to the order of this Court, but he wanted to ensure accuracy of the sanction order and for the same, two days time more is required. Recording the submission this matter stands posted to 08/07/2026, for production of copy of the sanction."

The Court then posted the matter to July 8 (Wednesday) for production of the sanction order.

The Court was considering a contempt plea filed by Kadakampally Manoj after the Principal Secretary of the Industries department failed to comply with the High Court direction asking him to re-consider sanction in light of its finding that there were prima facie materials to prosecute the KSCDC ex-officials.

The allegation against the accused is that they entered into criminal conspiracy with Jaimon Joseph, Proprietor of M/s JMJ Traders and in furtherance of the criminal conspiracy, dishonestly awarded contracts to M/s JMJ Traders, in violation of rules, causing losses of several crores to the corporation. The sanction sought by the CBI was rejected by the Principal Secretary, and the petitioner herein preferred a writ petition challenging the same.

In the writ petition, a co-ordinate Bench had found that there were prima facie materials to prosecute the accused and directed the State to pass an order in the light of its findings. However, sanction was again denied, prompting the contempt petitioner to prefer the present plea. During the course of the present proceedings, the Court granted a third chance to pass an order for sanction but again, sanction was denied.

On April 10, the Court set aside the order denying sanction. It had also found Mohammed Hanish, who earlier held charge of the cashew department, to have prima facie committed contempt of court for not granting sanction despite its repeated directions. It had then called for his personal appearance and had also directed him to re-consider sanction to prosecute former Managing Director K.A. Ratheesh and former Chairmen E. Kasim and R. Chandrasekharan.

However, instead of complying with the order, Hanish had preferred an appeal before the Division Bench, which had since been dismissed, directing Hanish to appear before the Single Judge.

During the last posting, Hanish had personally appeared before the Court in accordance with an earlier direction in the contempt plea and tendered his unconditional apology. In the order, the Court had also granted time till July 9 to the present officer in charge, K. Biju (arrayed subsequently as the 2nd respondent), to pass the order of sanction.

The personal appearance of Hanish is dispensed with for the time being.

Case No: Con.Case (C) No. 908 of 2025

Case Title: Kadakampally Manoj v. Mohammed Hanish and Anr.

Click to Read/Download Interim Order