Microfinance case: Kerala HC rejects plea to quash FIR against Vellappally

Kochi: In a major setback for SNDP Yogam supremo Vellappally Natesan, the Kerala High Court on Wednesday dismissed his plea, seeking the quashing of an FIR registered against him over alleged fraud and financial misappropriation in a microfinance scheme.

The court also directed that the case be probed by an IPS officer of 'impeccable integrity'.

The Vigilance & Anti Corruption Bureau (VACB) filed the FIR against Vellappally in 2016 for committing fraud and financial misappropriation in the microfinance programme run by the SNDP. Vellappally was named as the first accused.

While dismissing Vellappally's petition on Wednesday, the court also came down heavily on the Vigilance department as it filed only a sketchy charge sheet, and directed the state government to ensure that an IPS officer with impeccable integrity probe the case. One of the accused was discharged by the HC on Wednesday.

In 2016, former chief minister VS Achuthanandan had approached the Thiruvananthapuram Vigilance Court in person and submitted a petition against Vellappally, alleging that he had committed large-scale diversion of funds meant to be given at low rates of interest to beneficiaries under the microfinance scheme.

Acting upon the petition, the court had ordered a Vigilance probe.