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Kerala HC Reserves Order on Prosecution Sanction in SNDP Microfinance Case

The Kerala High Court has reserved its judgment on a key legal issue regarding the requirement for government sanction to prosecute accused persons in the SNDP microfinance scam. The court is examining conflicting positions on whether such sanction is mandatory.

LSN India · 22 September 2026

Kerala HC Reserves Order on Prosecution Sanction in SNDP Microfinance Case

Justice A. Badharudeen of the Kerala High Court reserved an order on Tuesday after hearing arguments on the critical question of whether prosecution sanction is necessary in the SNDP microfinance scam case. The court's decision will determine whether charges can proceed against the accused individuals currently named in the matter.

During the hearing, the State government presented its position that prosecution sanction was not a prerequisite to proceed with charges in the case. However, Justice Badharudeen identified that there exists a substantive legal question that requires careful consideration before ruling on the sanction requirement.

The SNDP microfinance case has drawn significant attention in Kerala, with multiple allegations against the organization and individuals involved. The determination of whether sanction is required could have substantial implications for the pace and validity of the prosecution proceedings.

The reserved order is expected to provide clarity on the procedural requirements that must be satisfied before the case can advance further. Until the High Court delivers its judgment, the prosecution sanction question remains unresolved, potentially affecting the timeline for legal proceedings against the accused.