Kochi: The Kerala High Court has summoned the Additional Chief Secretary of the state’s Backward Classes Development Department over the delay in deciding on prosecution sanction in the alleged SNDP microfinance fund misappropriation case.
Justice A Badharudeen rejected the State government’s request for another two weeks to take a decision and directed the senior official to personally appear before the court on September 11 to explain the delay.
Court Seeks Explanation Over Prosecution Sanction
The court had earlier directed the competent authority to decide on the prosecution sanction by September 10. However, the State informed the court that the sanction had still not been granted.
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The matter concerns allegations involving officials of the Kerala State Backward Classes Development Corporation (KSBCDC) and office-bearers of the Sree Narayana Dharma Paripalana (SNDP) Yogam.
The court has been monitoring the investigation following a petition by M S Anil, who sought an effective probe into the alleged diversion and misappropriation of microfinance funds.
What the case involves
- The case concerns alleged misappropriation of around ₹15.85 crore in government funds.
- The money was disbursed through the KSBCDC under a microfinance scheme intended to benefit members of marginalised communities.
- The funds were allegedly routed through SNDP Yogam for distribution as loans.
- The Vigilance and Anti-Corruption Bureau (VACB) registered the case in 2016 and has been investigating allegations involving SNDP office-bearers and officials associated with KSBCDC.
Investigation and Sanction Process
The investigation has involved multiple cases arising from the alleged irregularities. Recent proceedings before the High Court indicated that prosecution sanction was required before action could proceed against certain government officials.
In July 2026, the High Court had given the investigating officer a final opportunity to complete the probe, while also raising concerns over delays in the investigation and prosecution process.
The court had subsequently directed that the process for obtaining prosecution sanction in identified cases be completed within a specified timeframe.
The latest order now requires the Additional Chief Secretary to personally explain why the court’s direction on prosecution sanction was not complied with.
The matter will be taken up again on September 11.
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