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

Justice K. Natarajan and Justice Johnson John issue a stay order in appeals filed by former Kerala State Cashew Development Corporation chairman R. Chandrasekharan and former managing director KA Ratheesh.

A Division Bench of the Kerala High Court stayed the interim orders passed by the Single Bench granting sanction to the Kerala government to prosecute the accused persons in the ₹600 crore cashew nut import scam under the provisions of the Prevention of Corruption Act.

A bench of Justice K Natarajan and Justice Johnson John passed the stay order in appeals filed by the accused, former Kerala State Cashew Development Corporation (KSCDC) chairman R Chandrasekharan and former managing director KA Ratheesh.

The stayed orders include those passed by the Single Bench quashing two Government Orders (GOs) refusing sanction to prosecute them and confirming the GOs granting sanction to prosecute them and directing the Central Bureau of Investigation (CBI) to proceed with the prosecution.

The Division Bench order comes in the wake of two accused persons challenging the orders passed by the Single Bench. They argued that the Bench had repeatedly set aside the GOs that had refused to prosecute the sanction in the case, thereby prompting the sanctioning authority to pass an order in favor of the CBI. In a contempt petition, they challenged the Single Bench’s exercise of judicial review of the said GOs, contending that it was in excess of the Bench’s jurisdiction.

Meanwhile, Kadakampally Manoj, the complainant in the corruption case, challenged the appeals, questioning their maintainability. He had alleged corruption in the importation and purchase of cashews by the KSCDC.

A Division Bench in August 2026 allowed the petitions of Mr. Ratheesh and Mr. Chandrasekharan, finding merit in their contention that the court had earlier set aside the state’s refusal to sanction the probe and ordered a fresh assessment without giving the petitioners an opportunity to be heard.

The state refused sanction thrice before granting sanction on July 6, 2026 for a CBI probe.

Published – 03 Sep 2026 23:47 IST