Kerala Microfinance Scam: SIT Files Final Reports in 17 Cases, Says No Lapses in 30

The Special Investigation Team (SIT) probing the alleged ₹15.85-crore microfinance scam involving Sree Narayana Dharma Paripalana (SNDP) Yogam general secretary Vellapally Natesan has filed final reports in 17 cases, the Kerala High Court was informed on Monday.

S. Sasidharan, head of the SIT, told the court that of the 124 cases investigated, no irregularities were found in 30 cases. He clarified that a consolidated final report would be filed for all cases where no irregularity was detected.

The investigation revealed specific instances of misappropriation of funds meant for eligible beneficiaries in the Pulappally, Ranni, Mananthavady, Kunnathunadu, Kanayannur, Chittoor and Taliparamba unions. Steps to prosecute the offenders in these cases are being taken, Mr. Sasidharan informed the court.

The report was filed in response to a petition by M.S. Anil of Cherthala, who sought an investigation into the alleged misappropriation of funds by Mr. Natesan, N. Soman, K.K. Mahesan, and former managing directors of the Kerala State Backward Classes Development Corporation, Najeeb and Dileep Kumar.

The allegation is that the accused misappropriated funds intended for the welfare of backward communities under the microfinance programme through the SNDP Yogam. They allegedly submitted false utilisation certificates in the names of fictitious self-help groups between 2003 and 2014.

Earlier, the petitioner had argued that there was an inordinate delay in the investigation and sought the appointment of a new officer. The investigation was entrusted to a team led by Mr. Sasidharan in November 2024. The court is scheduled to consider the matter on Tuesday, August 11.

The case highlights the need for accountability in the disbursal of welfare funds meant for marginalised communities. The SIT's final reports mark a significant step in the legal process, though the investigation remains ongoing in many other cases.

The High Court's scrutiny of the investigation is expected to ensure that justice is delivered to the affected beneficiaries. Further hearings will determine the course of action based on the reports filed by the SIT.