How can scam accused head 3 PSUs? Kerala HC asks VD Satheesan-led govt

THE Kerala High Court on Thursday, July 30, slammed the Congress-led UDF government in the state for continuing a senior bureaucrat facing trial in the alleged ₹600 crore Cashew Development Corporation scam in key public sector positions.

While hearing a petition filed by public activist KM Shajahan, a bench of Justice A Badhar asked how the officer accused in a major corruption case could be entrusted with crucial government institutions, IANS reported.

The High Court has sought a response from the state government within four weeks after expressing serious concern over the continuance of Dr KA Ratheesh, the prime accused in the CBI case, as the Secretary of the Kerala Khadi Board, the Managing Director of Kerala State Rudronics, and the Chief Executive Officer of the Kerala Khadi Workers Welfare Fund Board.

“Has the government appointed such a major corruption accused to head three important institutions?” the court orally observed.

It added that the posts themselves offered ample scope for corruption.

Noting that the allegations against Ratheesh were grave, the Kerala High Court asked for an explanation on how such appointments were justified despite the pending criminal trial.

This came as the plea highlighted that Ratheesh continues in the posts even after the state government had granted sanction for his prosecution in the CBI case related to the alleged irregularities in cashew imports during his tenure as Managing Director of the Kerala State Cashew Development Corporation.

Moreover, it has been claimed that Ratheesh continued as Managing Director in PSUs for more than 11 years, contrary to the Companies Act, besides lacking the mandatory vigilance clearances.

The CBI case is related to the alleged ₹600 crore cashew import scam, wherein Ratheesh is the first accused.