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Kerala HC to decide if sanction needed for SNDP microfinance prosecution

The Kerala High Court is set to determine whether government sanction is required to prosecute accused officials in the SNDP microfinance case. The question has become a crucial legal issue with conflicting positions from different parties.

LSN India · 18 September 2026

Kerala HC to decide if sanction needed for SNDP microfinance prosecution

The Kerala High Court will examine whether prosecutorial sanction is necessary before proceeding against the accused in the SNDP microfinance scam case, a question that has divided the concerned authorities.

The Backward Classes Development Secretary has informed the court that no sanction is required to initiate or continue prosecution. However, the petitioner and the Special Public Prosecutor designated for Vigilance cases have taken the opposing position, arguing that sanction from the appropriate government authority is a mandatory prerequisite.

The issue has assumed significance as it directly impacts the pace and viability of the criminal proceedings against those accused in the microfinance scandal. The High Court's determination on this procedural matter will clarify the legal framework governing prosecution in cases involving officials of development boards.

The hearing represents a critical juncture in the case, with the court's ruling expected to resolve the jurisdictional ambiguity and enable authorities to move forward with the investigation and prosecution process accordingly.