Kochi: The Kerala High Court has directed the Kerala government to decide by September 10, 2026, on the prosecution of Vellappally Natesan, general secretary of the SNDP Yogam, and other accused in the ₹15.85 crore microfinance case.

Natesan heads the SNDP Yogam, a prominent socio-cultural organisation representing the Hindu Ezhava community in Kerala. The court’s direction comes after years of delay in proceedings related to the alleged misappropriation of funds under a government-backed microfinance programme.

Justice A Badharudheen directed the Additional Chief Secretary for Backward Classes to “pass appropriate orders without fail” on the prosecution of Natesan and the other accused.

Court warns SIT over investigation delay

The court also expressed strong displeasure over the pace of the investigation by the Special Investigation Team (SIT).

During the hearing, the judge told the lead investigating officer: “You have not complied with many of the earlier directions. You are on the verge of contempt proceedings.”

The court observed that the investigation appeared to be moving slowly, particularly given the high-profile nature of the accused.

The public prosecutor submitted that “no corrupt officer goes unpunished” under the present administration. The court, however, pointed to the limited progress made in the case over nearly a decade.

124 cases over alleged fund misappropriation

The case involves 124 registered crimes concerning the alleged misappropriation of government loans disbursed between 2003 and 2014.

The loans were provided through the Kerala State Backward Classes Development Corporation under a microfinance programme intended to benefit backward communities.

Investigators found evidence of alleged fund misappropriation in several units across Kerala, including Pulpally, Ranni and Mananthavady.

Several officials among accused

Natesan is among several people named as accused in the case. The list also includes M N Soman, K K Mahesan and K S Sabu.

Several former managing directors of the Kerala State Backward Classes Development Corporation have also been named as accused.

The High Court has now set September 10 as the deadline for the state government to decide on prosecution, bringing a specific timeline to proceedings that have faced prolonged delays.