Kochi, Sep 22 (SocialNews.XYZ) The Kerala government has informed the High Court that no prior prosecution sanction is required to proceed against SNDP Yogam General Secretary Vellappally Natesan and others in the multi-crore microfinance case, taking a position contrary to that adopted by the Vigilance.
The government submitted that prosecution sanction was not necessary as the accused were functioning as representatives of private institutions and did not fall within the category of public servants requiring such protection.
The Vigilance Department had earlier maintained that prosecution sanction was necessary before proceeding against the accused.
The conflicting positions taken by the government and the Vigilance had come under sharp criticism from the court.
The court on Tuesday deferred its order on the interim application concerning the issue of prosecution sanction.
Eight charge sheets have so far been prepared in connection with the case.
Vellappally Natesan and SNDP Yogam President M.N. Soman are among those named as accused in the case relating to alleged irregularities in the implementation of the microfinance scheme.
The case pertains to loans and grants routed through the Kerala State Backward Classes Development Corporation with the support of NABARD for helping women from backward communities set up small-scale enterprises.
The allegations are that funds meant for such projects were diverted through irregular means and that excessive interest was collected, causing financial loss to the government.
A Vigilance team had questioned Vellappally at his residence in February this year as part of the investigation.
The case dates back to 2016, when an investigation was initiated on the basis of a complaint by former Chief Minister V.S. Achuthanandan.
The allegations centre on loans allegedly obtained from the Backward Classes Development Corporation in the names of women through fictitious projects.
Achuthanandan had alleged that crores of rupees were obtained in the name of women through such schemes and that the money was misappropriated through financial manipulation and conspiracy.
He had alleged that the alleged irregularities involved around Rs 15 crore.
The prosecution sanction issue has now emerged as a crucial legal hurdle in the long-pending case, with the government and the Vigilance taking opposing positions before the court.
Source: IANS
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