Kochi: The Vigilance team on Wednesday questioned General Secretary of the SNDP Yogam Vellappally Natesan in the microfinance fraud case. The team, led by Crime Branch SP S Sasidharan, reached his residence at Kanichukulangara and recorded his statement. Natesan confirmed to the media that his statement had been taken.

In July last year, the Kerala High Court directed that the investigation into the case, in which Vellappally is the principal accused, be expedited. The court also instructed that S Sasidharan, who was then Vigilance SP, should continue to head the probe. An FIR has been registered naming five accused, including Vellappally.

The case was originally registered by Vigilance in 2016 following a complaint lodged by former Chief Minister V S Achuthanandan.

Those named in the FIR include former managing director of the Kerala State Backward Classes Development Corporation Najeeb, its current MD Dileep Kumar, Microfinance chief coordinator K K Maheshan and SNDP Union leader Dr M N Soman. The complaint alleged a fraud of ₹15 crore in connection with the microfinance scheme, along with charges of financial irregularities and criminal conspiracy.

It was alleged that between 2003 and 2015, large sums were borrowed through the Backward Classes Development Corporation in the name of self-help groups, ostensibly for disbursal, and misused. The loans were reportedly availed at low interest through the corporation and then distributed at higher rates of interest. It was further alleged that loans were sanctioned even in the names of non-existent beneficiaries.

Under the guise of small-scale ventures such as pickle, jam and soap manufacturing units, a project was allegedly fabricated and, on June 19, 2014, SNDP availed a ₹5 crore loan from the Kollam branch of the corporation. It was only when corporation officials initiated inquiries and action that many individuals came to know that loans had been taken in their names. Nearly 5,000 families reportedly faced revenue recovery proceedings, bringing the issue to light.

In November 2015, a case was registered naming K Padmakumar, Pathanamthitta SNDP Union president and chairman of KEPCO, as an accused. Subsequently, around a dozen related cases were also registered.

Later, V S Achuthanandan, then Leader of the Opposition, submitted a complaint alleging large-scale corruption in the microfinance schemes implemented through SNDP unions. The complaint stated that SNDP had secured ₹5 crore as a low-interest loan from the Kerala State Backward Classes Development Corporation in the names of women under fabricated schemes and that serious irregularities occurred in its distribution.

Achuthanandan first submitted his complaint to then Home Minister Ramesh Chennithala on October 13. As no action followed, he filed a second complaint and declared that he would approach the court if steps were not taken. The case was subsequently handed over to the Crime Branch.

In January 2016, on a petition filed by Achuthanandan, the Thiruvananthapuram Vigilance Court ordered a Vigilance inquiry against Vellappally Natesan. The Backward Classes Development Corporation also issued a notice stating if ₹3.67 crore out of the ₹12.6 crore allegedly received by Vellappally and M N Soman was not repaid immediately, attachment proceedings would be initiated.

Earlier, Vellappally Natesan had stated that he was prepared to face any challenge in the microfinance case. He maintained that he had committed no offence, would not evade the case, and that the filing of an FIR did not make him guilty. He had also said he would meet Chief Minister Pinarayi Vijayan to explain the matter.