The Central Bureau of Investigation (CBI) has widened its probe into the alleged multi-crore financial irregularities involving the import of raw cashew by the Kerala State Cashew Development Corporation (KSCDC) between 2006 and 2015 by invoking provisions of the Prevention of Corruption Act, 1988 against the corporation’s former Managing Director K.A. Ratheesh and former Chairman R. Chandrasekharan. The agency informed the Kerala High Court that additional charges relating to criminal misconduct by a public servant and illicit enrichment have now been incorporated into the case, significantly expanding the scope of the prosecution.
Earlier, both accused had been chargesheeted under provisions of the Indian Penal Code for alleged cheating and criminal conspiracy. According to the CBI, the evidence gathered during the investigation warranted the inclusion of offences under the Prevention of Corruption Act, making the case not only one of financial fraud but also of alleged abuse of public office for unlawful gain.
The development was placed before the Kerala High Court through a report filed in an ongoing contempt petition arising from the State government’s earlier refusal to grant prosecution sanction despite a previous court direction. The sanction to prosecute was eventually granted to the CBI in mid-July 2026, nearly a year after the contempt proceedings were initiated. Following the approval, the agency proceeded to strengthen the charges against the two former officials.
The investigation pertains to alleged irregularities in the procurement and import of raw cashew by KSCDC over nearly a decade. The CBI is examining whether official positions were misused during the procurement process, resulting in financial losses to the state-owned corporation and wrongful gains to those involved. With the addition of corruption-related provisions, investigators are expected to further scrutinise decision-making, financial approvals and the movement of funds during the relevant period.
The matter has also attracted judicial attention in a separate petition filed by K.M. Shajahan, former Additional Private Secretary to late Kerala Chief Minister V.S. Achuthanandan. The petition questioned the continuation of K.A. Ratheesh in key government positions despite being chargesheeted in the alleged embezzlement case. During the hearing, the Kerala High Court orally observed that the situation reflected a “sorry state of affairs” and remarked that corruption remained a serious menace requiring careful judicial consideration.
At present, Ratheesh continues to hold multiple senior positions in the Kerala government, including Secretary of the Kerala Khadi and Village Industries Board, Managing Director of RUTRONIX (Kerala State Rural Women’s Electronics Industrial Cooperative Federation Ltd.), and Chief Executive Officer of the Kerala Khadi Workers’ Welfare Fund Board. His continued appointment to these public offices has become a subject of legal and administrative scrutiny in light of the ongoing criminal proceedings.
Responding to the latest developments, Ratheesh said he was unaware of the CBI’s report filed before the High Court. He stated that he had not resigned from his posts and intended to meet the Additional Chief Secretary of the Industries Department to discuss the matter. He also expressed disagreement with the High Court’s oral observations, saying he would challenge those remarks before the appropriate legal forum.
Legal experts note that the inclusion of charges under the Prevention of Corruption Act substantially raises the gravity of the case. The prosecution will now be required to establish not only allegations of cheating and conspiracy but also whether public office was misused for personal enrichment or unlawful benefit. As court proceedings move forward, the evidence presented by the CBI and the prosecution’s ability to substantiate the corruption allegations are expected to play a decisive role in determining the outcome of this long-running case.
