Kochi, July 2 (IANS) In a significant development in the long-running alleged corruption case involving the Kerala State Cashew Development Corporation (KSCDC), the High Court on Thursday was informed that the state government has finally passed the sanction order to prosecute former senior officials of the corporation, ending years of resistance that had triggered contempt proceedings against top bureaucrats.

The submission was made before Justice A. Badharudeen by the Director General of Prosecution (DGP), who stated that the government had issued the sanction order in compliance with the Kerala High Court’s repeated directions but required additional time to ensure the accuracy of the order before placing it on record.

Recording the submission, the Court posted the matter to July 8 for production of the sanction order.

The proceedings arose from a contempt petition filed by Kadakampally Manoj after the Industries Department repeatedly declined sanction sought by the CBI to prosecute former KSCDC officials despite specific judicial directions to reconsider the matter.

The case pertains to 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 CBI had sought prosecution sanction against former Managing Director K.A. Ratheesh and Chairman R. Chandrasekharan.

However, the Industries Department had repeatedly refused sanction, leading to prolonged litigation.

Chandrasekharan is a top Congress leader and president of the INTUC, the trade union wing of the Congress party.

A coordinate Bench of the High Court had earlier held that there were prima facie materials warranting prosecution and directed the government to reconsider the matter in light of its findings.

Despite this, the sanction was denied more than once, prompting the contempt proceedings.

In April this year, Justice Badharudeen set aside the latest order refusing sanction and observed that Mohammed Hanish, who then held charge of the department, had prima facie committed contempt of court by repeatedly declining sanction despite clear judicial directions.

The Court had directed his personal appearance and ordered a fresh reconsideration.

Instead of complying, Hanish challenged the order before a Division Bench.

The appeal, however, was dismissed, with the Division Bench directing him to appear before the Single Judge.

During the previous hearing, Hanish appeared before the Court and tendered an unconditional apology, following which his personal appearance was dispensed with for the present.

The Court had subsequently granted time until July 9 to the present officer in charge, Principal Secretary K. Biju, to pass fresh orders.

On Thursday, the State informed the Court that the sanction had now been granted, with the formal order expected to be produced before the High Court on July 8.

The production of the sanction order is expected to clear the way for the CBI to proceed with prosecution against the former KSCDC officials in the alleged multi-crore corruption case, which has remained stalled for years over the issue of governmental approval.

The case has been going on for the past 18 years. The prosecution sanction was not given during the previous Pinarayi Vijayan government’s tenure.

–IANS

sg/dpb