Kerala HC says sanction not needed to charge SNDP chief in ₹15.85 cr micro‑finance probe

Kerala High Court held that a sanction from the Backward Classes Development Department is not needed to prosecute those accused in the SNDP microfinance case, including SNDP general secretary Vellappally Natesan. Justice A. Badharudeen issued the interim order after a petition by M.S. Anil of Alappuzha asked for a Special Investigation Team. The SIT will examine alleged misuse of loans worth ₹15.85 crore that the Kerala State Backward Classes Development Corporation gave to the SNDP Yogam under a micro‑finance scheme. The state government argued that no prosecution sanction is required. The Vigilance department countered, saying the Prevention of Corruption Act, 1988 treats the accused as public servants who need sanction from the authority that can terminate them. The court sided with the state view, removing the need for such sanction. The decision clears the way for the investigation to proceed without a separate approval. The case highlights how legal interpretations can affect the ability to charge public‑linked organisations in financial scandals.

Context

The Backward Classes Development Department runs welfare schemes for socially disadvantaged groups in Kerala. The Prevention of Corruption Act, 1988 normally requires sanction to prosecute public servants, a rule often debated in corruption probes. This ruling shows courts can deem sanction unnecessary when the alleged act involves a private body that received public funds.