High Court slams government over Cashew Case, orders Principal Secretary to appear after third prosecution refusal

KOCHI: The Kerala High Court has quashed a government order that rejected the CBI’s application for permission to prosecute key suspects in the high-profile cashew import corruption case.

Justice A. Badaruddin observed that rejecting the application while ignoring prior judicial directives constitutes prima facie contempt of court. Consequently, the court has ordered A.P.M. Muhammad Haneesh, Principal Secretary of the Industries Department, to appear in person on the morning of May 18.

The CBI is seeking to prosecute R. Chandrasekharan, the former Chairman of the Cashew Development Corporation and a prominent Congress leader, along with former Managing Director K.A. Ratheesh. This marks the third instance in which the government has rejected the CBI’s application for prosecution despite ongoing judicial scrutiny. In response, the High Court has explicitly directed the government to reconsider the application and reach a lawful decision before the May 18 deadline.

The interim order follows a contempt of court petition filed by Kadakampally Manoj, a Kollam native who originally approached the court when the government first refused to grant prosecution Sanction.

The government maintains that the CBI report highlights only "procedural errors and administrative lapses" rather than criminal corruption or abuse of power. However, the Single Bench dismissed this stance, labelling it unjustifiable and contradictory to the court's previous assessments and the government’s own earlier positions.

"This is a massive scam involving irregularities of ₹80 crore dating back years. Despite evidence of guilt, the government remains reluctant to send the accused to trial. This is a deliberate violation of court orders and a disservice to the public interest," the bench stated.

Case background

The allegations involve the misuse of funds and corruption totalling ₹80 crore related to the import of raw cashews between 2006 and 2015. Following a High Court directive, the CBI took over the investigation in 2016 to ensure an impartial probe into the Cashew Development Corporation's dealings.