Cashew import scam: Kerala High Court stays interim orders of Single Bench

The Kerala High Court has stayed interim orders passed by a Single Bench, allowing the state government to prosecute individuals in a ₹600-crore cashew import scam under the Prevention of Corruption Act. This decision by Justice K. Natarajan and Justice Johnson John was made in appeals filed by R. Chandrasekharan, the former chairman of Kerala State Cashew Development Corporation (KSCDC), and K.A.

Ratheesh, the former managing director. The stay includes orders that had quashed government orders denying sanctions for prosecution and upheld orders granting such sanctions, directing the Central Bureau of Investigation (CBI) to proceed with the criminal investigation.

The accused challenged the Single Bench's orders, arguing that it repeatedly quashed the government orders denying prosecution sanction, leading the sanctioning authority to issue a favorable order. They contended that this constituted an excessive exercise of the Bench's jurisdiction in a contempt petition. Meanwhile, the complainant, Kadakampally Manoj, challenged the appeals, questioning their maintainability and alleging corruption in the cashew import and purchase by KSCDC.

The Division Bench had previously allowed the petitions, finding merit in the contention that the court had set aside the State's refusal of sanction for the CBI probe after three refusals and directed reconsideration without giving the petitioners a hearing. The state had initially refused to give permission for prosecution thrice before granting it on July 6, 2026.