Govt. confronts legal, political imbroglio in KSCDC cashew import corruption case

The United Democratic Front (UDF) government appeared to confront a legal and political imbroglio after a single bench of the Kerala High Court ordered the administration to reconsider giving sanction to the Central Bureau of Investigation (CBI) to prosecute a senior Congress leader and State president of the Indian National Trade Union Congress (INTUC) R Chandrasekharan, among three others, on the charge of corruption in the import of raw cashew when he chaired the Kerala State Cashew Development Corporation (KSCDC), a public sector company, during the 2012-15 period. 

The case had remained in limbo since the CBI filed a chargesheet against Mr. Chandrasekharan and three others, former KSCDC Managing Director K.A. Ratheesh, former chairperson E. Kasim, and a private cashew trader Jaimon Joseph, at the agency’s special court in Thiruvananthapuram in 2021, with the previous Left Democratic Front (LDF) government not granting prosecution sanction. 

The CBI charges against the suspects include corruption, criminal conspiracy, and misuse of the “freedom with responsibility” latitude granted to the KSCDC, which endows the company operational autonomy to directly purchase and import raw cashew nut to maintain uninterrupted factory operations and support cashew sector workers by ensuring the maximum number of working days per year. 

The CBI also charged the suspects with violating the Store Purchase Manual and the Central Vigilance Commission (CVC) guidelines. 

The case came to the fore again after Industries Department Secretary  A.P.M. Mohammed Hanish appeared before the High Court on Monday and submitted an unconditional apology in a contempt petition moved by petitioner Kadakampally Manoj, who accused the government of refusing prosecution sanction in the case. 

Mr. Chandrasekharan dispelled media reports that the government would soon allow the CBI to prosecute him and the other accused in the case. “Chief Minister V.D. Satheesan’s office has so far taken no decision on the matter,” Mr. Chandrasekharan told The Hindu. 

Mr. Chandrasekharan said the KSCDC had not imported cashew during his tenure as chairperson. “The KSCDC board decided unanimously to procure landed raw cashew prior to being imported from cashew-growing regions abroad. The KSCDC under my chairpersonship provided 628 working days for cashew workers compared to my predecessor’s 72,” he said. 

Mr. Chandrasekharan said some vested interests inimical to him had raked up the issue to rob the INTUC’s upcoming leadership (scheduled to be inaugurated by Mr. Satheesan) of its sheen. “I am on sound legal ground and have done no wrong, and prosecution sanction, if at all, by the UDF government, does not perturb me,” he added.