The Kerala High Court has initiated civil contempt proceedings against the Principal Secretary of the Industries Department, Mohammed Hanish, for “willfully disobeying” judicial directions regarding the prosecution of two former senior officials of the Kerala State Cashew Development Corporation (KSCDC). The case centers on an alleged ₹80 crore scam dating back to 2011 involving the procurement of raw cashew nuts.
The legal battle originated from a plea filed by Kadakampally Manoj, a resident of Kollam. Following his petition in 2015, the High Court ordered a Central Bureau of Investigation (CBI) probe into allegations of financial irregularities at the KSCDC. The investigation targeted K.A. Ratheesh, the former Managing Director, and R. Chandrasekharan, the former Chairman, over the alleged misuse of ₹80 crore allotted for raw cashew nut procurement.
In a significant judgment in 2024, the High Court set aside previous government orders that denied sanction to prosecute the duo. The court had explicitly directed the state government to grant the necessary sanction for the CBI to proceed under the Prevention of Corruption Act.
Despite the 2024 judicial mandate, the Industries Department issued a fresh order in October (dated 2025 in recent filings) once again declining the sanction. Justice A. Badharudeen, presiding over the contempt plea, observed that the government appeared “very reluctant” to allow the prosecution despite prima facie evidence substantiating the commission of offences.
The court noted that the government was hesitating to grant sanction “for reasons known to it” and described the administration’s stance as “arbitrary, against public interest and in gross violation of the findings” recorded in the previous judgment.
Justice Badharudeen stated in his order:
“The inevitable conclusion of this court is that the respondent (official) herein, representing the government, did not adhere to the directions issued by this court… and willfully disobeyed the direction and thereby, prima facie, committed the offence of civil contempt, as defined under the Contempt of Courts Act, 1971.”
The High Court has now set aside the October order issued by the Principal Secretary and directed the official to reconsider the matter strictly in line with the 2024 judgment.
The court has issued the following directions:
- The Principal Secretary must issue a fresh order regarding the prosecution sanction on or before May 18.
- Mohammed Hanish, the Principal Secretary of the Industries Department, is required to appear before the court in person on May 18 in connection with the civil contempt proceedings.
