The Kerala government has granted prosecution sanction against two former top officials of the Kerala State Cashew Development Corporation (KSCDC) in an alleged multi-crore corruption case, the Kerala High Court was informed on Thursday, 2 July 2025. The development, confirmed before Justice A. Badharudeen by the Director General of Prosecution, ends years of governmental resistance that had escalated into contempt proceedings against senior bureaucrats.

What the Court Was Told

The Director General of Prosecution submitted before the bench that the state had issued the sanction order in compliance with the High Court's repeated directions. However, the government sought additional time to verify the accuracy of the order before formally placing it on record. Justice Badharudeen recorded the submission and posted the matter to 8 July for production of the sanction order.

The Alleged Scam and Who Is Accused

The case centres on allegations that former KSCDC functionaries entered into a criminal conspiracy with Jaimon Joseph, proprietor of M/s JMJ Traders, and awarded contracts to the firm in violation of prescribed procedures, allegedly causing losses running into several crores of rupees to the state-owned corporation. The Central Bureau of Investigation (CBI) had sought prosecution sanction against former Managing Director K.A. Ratheesh and former Chairman R. Chandrasekharan. Notably, Chandrasekharan is a senior Indian National Congress (Congress) leader and president of the Indian National Trade Union Congress (INTUC), the party's trade union wing.

Years of Resistance and Contempt Proceedings

The contempt proceedings arose from a petition filed by Kadakampally Manoj after the Industries Department repeatedly declined the CBI's sanction requests despite specific judicial directions to reconsider. A coordinate bench of the High Court had earlier found prima facie materials warranting prosecution and directed the government to act accordingly — yet sanction was denied more than once.

In April 2025, Justice Badharudeen set aside the latest refusal order and observed that Mohammed Hanish, who then held charge of the department, had prima facie committed contempt of court by repeatedly declining sanction in defiance of clear judicial directions. The Court directed his personal appearance and ordered fresh reconsideration. Hanish challenged the order before a Division Bench, which dismissed the appeal and directed him to appear before the Single Judge. He subsequently appeared and tendered an unconditional apology, following which his personal appearance was dispensed with.

The Court had thereafter granted time until 9 July to the present officer in charge, Principal Secretary K. Biju, to pass fresh orders. It is against this backdrop that the state finally moved to grant sanction.

Significance: An 18-Year-Old Case Moves Forward

The case has been dragging on for 18 years. Prosecution sanction was not granted even during the previous tenure of the Pinarayi Vijayan government. The granting of sanction now clears the path for the CBI to formally proceed with prosecution against the former KSCDC officials — a move long stalled by what courts characterised as deliberate governmental inaction.

With the formal sanction order due before the High Court on 8 July, the case is expected to enter a new phase after nearly two decades of legal limbo.