Kerala High Court orders filing of chargesheet against Vellappally Natesan in microfinance case

The Kerala High Court on Friday issued a significant order instructing the investigating officer to file chargesheets against Vellappally Natesan, General Secretary of the SNDP Yogam, and other accused in microfinance cases within the next two weeks.

While passing this interim order, Justice A. Badruddeen clarified that the investigating agency can file the chargesheet without obtaining prosecution sanction from the government to proceed against the accused. The court noted that the filing of the chargesheet had been delayed due to a dispute regarding the requirement for prosecution sanction.

The investigation team informed the High Court that they had prepared chargesheets in several cases and were merely awaiting prosecution sanction to present them in the relevant court. Earlier, the court had directed the Secretary and competent authority of the Backward Classes Development Department (BCDD) to consider granting prosecution sanction. However, the BCDD informed the court that no government sanction is required to prosecute the accused in these cases.

According to a Hindustan Times report, the matter was brought to the High Court by M.S. Anil, a resident of Cherthala. Anil argued that the investigation against Natesan was proceeding at a very slow pace. He further contended that under the Prevention of Corruption Act, since the accused had received financial assistance from the Central or State Government, sanction is necessary to proceed against them. Currently, the entire investigation is being conducted under the supervision of the High Court.

It is alleged in the case that between 2003 and 2014, funds were allocated under a microfinance scheme for the welfare of backward communities by the Kerala State Backward Classes Development Corporation. These funds were received by Sree Narayana Dharma Paripalana (SNDP) Yogam units, but were misused by submitting false utilization certificates in the name of fictitious self-help groups. It is alleged that an amount of ₹15.85 crore provided to the SNDP Yogam under the microfinance scheme was illegally utilised.

SNDP Yogam is a social organisation established on the principles of social reformer Shri Narayana Guru. The organisation was founded to promote the social, educational, and economic upliftment of the Ezhava community and other underprivileged sections.