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The Kerala High Court on Friday (August 14) directed the Additional Chief Secretary for Backward Classes to consider the requests for prosecution sanction made by the Special Investigation Team (SIT) probing the ₹15.85 crore SNDP Microfinance Scam case to expedite prosecution sanction.

The case relates to the alleged misappropriation of government funds under the Micro Finance Scheme. A crime was registered in 2016 and it is alleged that the officers of the SNDP Yogam, including Vellappally Natesan, and former Managing Directors of Kerala State Backward Classes Development Corporation Ltd. (KSBCDC) were involved in the scam.

Justice A. Badharudeen issued the interim order today after interacting with investigating officer S. Sasidharan IPS, who appeared in person based on Court's earlier direction.

After perusing the detailed report regarding the progress of the investigation, the Court noted that final report can be filed in at least 8 out of the 124 cases registered.

"In 8 cases, involvement of the accused persons are found, out of which one...., the final report is awaiting sanction by the government. It is stated that the Additional Chief Secretary for Backward Classes is the competent authority to give sanction. Therefore, there shall be a specific direction to the Additional Chief Secretary to consider the request for sanction and pass appropriate orders without fail on or before 10.9.2026."

The Court was considering two pleas registered in 2020 seeking appointment of a Special Investigation Team headed by an efficient officer to investigate into the crime registered by the Vigilance and Anti-Corruption Bureau (VACB) relating to the SNDP micro finance fraud case.

During the pendency of the afore pleas, the Court had granted many extensions to the investigating officers appointed. On May 20, an order was passed directing the investigating officer to complete probe by June 20 and to file reports in all case.

Today, the Court orally remarked that the SIT had not complied with several earlier directions made by it:

"You have not complied with many of the earlier directions. You are on the verge of contempt proceedings."

The Court orally remarked that investigation is slow because of who the accused in the case is. However, the public prosecutor submitted that there has been no progress in the investigation for the last 10 years but now that there is a new government, steps will be taken to ensure no corrupt officer goes unpunished. 

He added that more time is sought for filing of proper final reports. He pointed out that in one of the cases where FAD (Further Action Dropped) was filed, investigating officer took efforts to investigate and find that there has been misappropriation in that case also.

After hearing the parties and perusing the report, the Court passed order recording the submission that prosecution sanction requests would be made in a time-bound manner.

"The investigating officer would submit that regarding two other cases, process for submitting prosecution sanction is under consideration of the investigating officer. He seeks a week's time to submit the records for getting prosecution sanction before the Additional Chief Secretary. Investigating officer is directed to complete the process within a period of 7 days as submitted by him."

The Court also recorded the submission made by the investigating officer that in 5 other cases, the final report is under rectification. He sought 20 days' time to finalise the process of rectification and to submit the same for getting prosecution sanction. 

"there shall be a direction to the Investigating Officer to do the exercise as submitted within 20 days," the Court added.

The case is posted to September 10 for further consideration.

Case No: WP(C) No. 14599 of 2020 and Crl.MC No. 5539/2020

Case Title: M.S. Anil v. State of Kerala and Ors. and connected case

Counsel for the petitioners: D. Anil Kumar & O.V. Maniprasad, Jose Antony, S. Shiv Shankar

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