SNDP microfinance case: Setback for Vellappally Natesan as Kerala HC says no sanction needed to prosecute accused

The Kerala High Court has directed that sanction from the Backward Classes Development Department was not required to prosecute the accused, including Sree Narayana Dharma Paripalana Yogam (SNDP) general secretary Vellappally Natesan in the SNDP microfinance case.

Justice A. Badharudeen passed the interim order in a petition by M.S. Anil of Alappuzha to constitute a Special Investigation Team to probe the alleged misappropriation in the loans amounting to ₹15.85 crore disbursed to the SNDP Yogam under a microfinance scheme by the Kerala State Backward Classes Development Corporation.

While the State had maintained that prosecution sanction was not required to proceed against the accused, the Vigilance department had contended that as per the Prevention of Corruption Act, 1988 (PCA), the accused fell under the category of public servants and required prosecution sanction from the authority with the power to terminate them from service.