Kochi | The Kerala High Court on Friday expressed strong displeasure over the prolonged delay in the investigation of an alleged ₹15.85 crore microfinance fraud case and raised serious concerns about the conduct of the investigating officer. The court indicated that the officer could be replaced if the probe is not completed within the stipulated timeframe. The observations came as the investigation, originally launched in 2016, remains unfinished nearly a decade later.
The case involves allegations of financial irregularities linked to SNDP Yogam General Secretary Vellapally Natesan and others. According to the allegations, government loans amounting to approximately ₹15.85 crore, disbursed between 2003 and 2014 under a microfinance scheme meant to benefit members of marginalized communities, were misappropriated. Despite years of investigation, the final report has yet to be submitted before the court.
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During Friday’s hearing, the High Court made sharp oral observations regarding the repeated delays. The bench remarked that the investigating officer appeared unable to complete the probe and suggested that there could be external pressures affecting the progress of the investigation. The court emphasized that judicial directions cannot be ignored and warned against making a mockery of court orders.
The proceedings stem from a petition filed in 2020 by M. S. Anil, who sought a comprehensive vigilance investigation by a special team led by an honest and efficient officer. The petitioner argued that the seriousness of the allegations and the suspected misuse of public funds warranted a more effective and transparent inquiry.
Notably, on May 20, the High Court had granted what it described as a final one-month extension for the completion of the investigation and submission of the final report. At that time, the investigating officer had sought additional time, citing involvement in another high-profile case. The court had made it clear that the extension was intended to be the last opportunity to conclude the probe.
However, when the matter came up again on Friday, the state government sought further time and attempted to place a sealed-cover report detailing the progress of the investigation before the court. The bench expressed dissatisfaction with the repeated submission of sealed reports without any visible advancement in the case. It observed that if the current officer was unable to devote sufficient time to the matter, the investigation could have been assigned to another officer.
The court further noted that, based on the circumstances presented before it, the conduct of the investigating officer did not appear entirely bona fide. The remark is being viewed as a significant development, as it raises questions about the manner in which the investigation has been handled over the years.
Despite its strong criticism, the High Court ultimately accepted the government’s request for a limited extension and granted a final three weeks to complete the investigation and file the final report. The bench stressed that the additional time was being granted as a last opportunity and that there should be no further unnecessary delay in bringing the matter to a conclusion.
The case has now been posted for hearing on July 8. Legal observers believe that if the final report is not filed by then, the court may adopt a much stricter stance and consider further action regarding the conduct of the investigation. With the matter remaining unresolved after years of scrutiny, attention is now focused on whether the long-pending probe will finally reach its conclusion within the deadline set by the court.
