Cashew Corp Scam: Kerala High Court Quashes Denial Of Sanction For CBI Probe, Summons Industries Department Secy For 'Prima Facie' Contempt

The Kerala High Court on Friday (April 10) ordered the personal appearance of the Principal Secretary, Industries Department (Cashew) of the State government in a contempt plea initiated for denying sanction for the Central Bureau of Investigation (CBI) to prosecute allegedly corrupt ex-officials of the State Cashew Development Corporation (KSCDC).

A detailed order is awaited.

The plea was moved after the State again 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.

Justice A. Badharudeen pronounced in open court:

"Prima facie contempt found. Order set aside. For appearance of the contempt respondents in person, list on May 18."

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.

During previous hearings, the Court had orally criticised the government saying that it seemed to be siding with corrupt officials and had come down heavily on the State for declining sanction. After hearing the parties, the Court had reserved its verdict.

The Principal Secretary is directed to personally appear before the Court on May 18.

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

Case Title: Kadakampally Manoj v. Mohammed Hanish