SNDP microfinance scam: Kerala HC reserves order on sanction to prosecute accused
The Kerala High Court has reserved its order regarding the necessity of government sanction to prosecute officials involved in the SNDP microfinance scam. The case centers on whether the accused, who managed funds from a government agency, qualify as public servants under the Prevention of Corruption Act.
Why it matters
The ruling will set a legal precedent for how officials of NGOs receiving government financial assistance are classified under anti-corruption laws in India.
The Kerala High Court has reserved its orders on the question of prosecution sanction for the accused, including Sree Narayana Dharma Paripalana (SNDP) Yogam general secretary Vellappally Natesan, in the SNDP microfinance scam case.
Justice A. Badharudeen noted that there was a legal issue to be considered regarding prosecution sanction after recording the State government’s stand that sanction was not required to prosecute the accused in the matter.
The court was considering a petition by M.S. Anil of Alappuzha seeking the constitution of a Special Investigation Team to probe the alleged misappropriation in loans amounting to ₹15.85 crore disbursed to the SNDP Yogam under a microfinance scheme by the Kerala State Backward Classes Development Corporation (KSBCDC).
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