JUDGEMENT

[WP(C) No.25863/2020, Crl.M.C.Nos.497/2022 & 1634/2022]

The above criminal miscellaneous cases and the writ petition pertain to the final report dated 30/12/2020 submitted by the CBI, Cochin Branch, Kerala in RC 08(A)/2016/CBI/ACB/Cochin before the Special Judge, CBI Court, Thiruvananthapuram.

2.The Kerala State Cashew Development Corporation (for short, “KSCDC”) is a government owned company engaged in the business of cashew. It was formed in 1969 for the purpose of promoting the business of cashew and for providing employment to cashew workers in Kerala. As per the Articles of Association of the Company, its business and management shall be carried out by the Managing Director subject to the control and direction of the Board of Directors. The Chairman of the Company is entitled to preside over all the meetings of the Board of Directors. One Sri.K.A.Ratheesh was the former Managing Director of the Company from March 2005 to October 2015, one Sri.E.Kasim was the former Chairman of the Company from September 2006 to July 2011, and one Sri.R.Chandrasekharan was the former Chairman of the Company from February 2012 to October 2015. In the course of business, the company imports raw cashew nuts for the purpose of processing and sale. Alleging malpractices, mismanagement, corruption and misutilization of funds in the matter of procurement of raw cashew nuts by the company from India and outside resulting in huge loss to the company and consequentially to the exchequer, the petitioner in WP(C) No.25863/2020 approached this court by filing writ petition (WP(C) No. 16144/2014) praying for an investigation by the CBI. By judgment dated 23/9/2015, this court allowed the same and directed the CBI to conduct the investigation. Pursuant to the said direction issued by this Court, CBI registered an FIR on 27/7/2016 against three persons mentioned above (Sri.K.A.Ratheesh, Sri.E.Kasim & Sri.R.Chandrasekharan) and one Sri. Jaimon Joseph, Proprietor, M/s.JMJ Traders, Kottayam arraying them as accused Nos.1 to 4 respectively for the offences punishable under Sections 120B, 420 of the Indian Penal Code (for short, the IPC) and Section 13(2) r/w 13(1)(d) of the Prevention of Corruption Act, 1988 (for short, 'the PC Act').

3.The allegation in brief in the FIR was that the accused No.1 Sri.K.A.Ratheesh, former Managing Director of KSCDC, accused No.2, Sri.E.Kasim, former Chairman of KSCDC, and accused No.3, Sri.R.Chandrasekharan, former Chairman of KSCDC, during the period from 2006-2015, entered into criminal conspiracy with accused No.4 Sri. Jaimon Joseph, Proprietor of M/s. JMJ Traders, Kottayam and in furtherance of the said criminal conspiracy, accused Nos.1 to 3 dishonestly awarded tenders to M/s. JMJ Traders, Kottayam, for supplying raw cashew nuts with an intention to cheat KSCDC, in violation of the Rules and procedures adopted by the Government of Kerala, which resulted in wrongful pecuniary loss to KSCDC, estimated to be in several crores, and corresponding wrongful gain to private party and themselves.

4.The CBI, after conducting a detailed investigation, found that the accused Nos.1 to 4 mentioned above committed offences punishable under Section 120B r/w 420 of IPC and Section 13(2) r/w 13(1)(d) of the PC Act. Before filing the final report, accused No.2 died. Prior to the submission of the final report, CBI sought sanction before the sanctioning authority, the Secretary, Industries Department (Cashew), Secretariat, Thiruvananthapuram (2nd respondent in WP(c) 25863/2020) under Section 19 of the PC Act for prosecuting the accused Nos.1 and 3. As already stated, accused No.1 was the Managing Director in service of the company from March 2005 to October 2015 and accused No.3 was the Chairman of the company holding office from February 2012 to October 2015. However, the sanctionin