Kerala HC asks VACB how accused got sanction order in cashew import case

The Kerala High Court on Wednesday directed the Vigilance and Anti-Corruption Bureau (VACB) to clarify how the accused in the alleged cashew import scam obtained a copy of the prosecution sanction order. Justice A. Badharudeen, hearing a petition in this matter, sought a report from the VACB on the mode of delivery of the order.

During the hearing, a Vigilance official told the court that the order was despatched on July 2, 2026, the same day it was issued. The court directed the official to file an additional affidavit within seven days detailing the mode of service.

The court orally remarked that the issue of sanction to prosecute public officials was between the sanctioning authority and the investigating agency, and it had nothing to do with the accused. If the accused had any grievance regarding the order, he could obtain a copy when it was produced before the court, the court noted.

The sanction order was issued by the Cashew department, allowing the Central Bureau of Investigation (CBI) to prosecute R. Chandrasekharan, State president of the Indian National Trade Union Congress (INTUC) and former chairperson of the Kerala State Cashew Development Corporation (KSCDC), and K.A. Ratheesh, former managing director of the KSCDC. The prosecution relates to alleged misappropriation in the import of raw cashew by the corporation between 2006 and 2015.

Mr. Chandrasekharan is alleged to have produced the government order at a press conference. K.M. Shajahan, a lawyer, filed the petition seeking a Vigilance inquiry into the alleged leak of the prosecution sanction order to the accused.

The High Court's directive comes amid scrutiny of how the sanction order, which is normally a confidential document between the sanctioning authority and the investigating agency, reached the accused. The VACB has been asked to explain the circumstances, and the additional affidavit is expected to shed light on the process followed in despatching the order.

The case pertains to irregularities in the import of raw cashew by the KSCDC during the period when the two accused held key positions. The CBI had sought sanction to prosecute them after completing its investigation. The sanction was granted on July 2, 2026, and the same day it was allegedly made public by the accused.

The court has posted the matter for further hearing after the VACB submits its affidavit. The inquiry will examine whether there was any procedural lapse in the transmission of the sanction order.