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2026 Supreme(Online)(Ker) 12894

IN THE HIGH COURT OF KERALA AT ERNAKULAM
MR. A. BADHARUDEEN, J
SANTHOSH KUMAR S.R – Appellant
Versus
STATE OF KERALA – Respondent
BAIL APPL. NO. 558 OF 2026 | CRIME NO.VC 2/2026



Advocates:
For the Appellants/Petitioners: SRI.ARUN V.G., SMT.V.JAYA RAGI, SRI.R.HARIKRISHNAN, SRI.NEERAJ NARAYAN, SMT.SREELAKSHMI J PILLAI, SMT.A.S.SALMA
For the Respondents: SRI.RAJESH A., SR.PUBLIC PROSECUTOR SMT.REKHA.S

Serious allegations of financial misappropriation warrant denial of anticipatory bail when custodial interrogation is necessary for effective investigation and recovery of misappropriated funds.

Headnote:(A) Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 482 - Bharatiya Nyaya Sanhita, 2023 - Sections 316(5), 314, 61(2), 3(5), 344 - Prevention of Corruption (Amendment) Act, 2018 - Sections 13(1)(a) r/w 13(2) - Anticipatory bail application dismissed due to serious allegations of misappropriation involving public funds, with sufficient grounds for custodial interrogation and recovery of misappropriated amounts. (Paras 1, 3, 10)

(B) Anticipatory Bail - Requirements - The court emphasizes the necessity of custodial interrogation when serious allegations involving systemic failures and possible criminal conspiracies are evident, reaffirming that mere claims of innocence do not absolve accountability. (Paras 9, 10)

Facts of the case:
The petitioner, accused in a major misappropriation case involving significant financial discrepancies in the sale of 'Adiya Sishtam Ghee', sought pre-arrest bail alleging innocence and physical disability. The FIR was based on a report directing investigation into misappropriations during the Sabarimala temple operations.

Findings of Court:
The court highlighted evidence connecting the petitioner to the alleged financial misappropriation, indicating systemic failures during supervisory duties at the temple, leading to significant financial losses for the Travancore Devaswom Board.

Issues: The main issues addressed included whether the petitioner be granted anticipatory bail in light of the serious allegations and the necessity for custodial interrogation to investigate potential misuse or misappropriation of public funds.

Ratio Decidendi: The court found prima facie involvement of the petitioner in alleged misappropriations during temple operations, dismissing the claim of innocence and underscoring the importance of custodial interrogation for a thorough investigation.

Result: Anticipatory bail application dismissed.

Table of Content
1. application for anticipatory bail. (Para 1 , 2 , 3)
2. details of alleged misappropriation by accused. (Para 4 , 5)
3. arguments for denial of bail. (Para 6 , 7)
4. investigation findings on procedural failures. (Para 8)
5. accused's role in financial misconduct. (Para 9)
6. court denies anticipatory bail and orders surrender. (Para 10)

ORDER

Dated this the 23rd day of February, 2026

1st accused in Crime No.VC 02/2026 of Pathanamthitta Police Station seeks pre-arrest bail in this petition filed under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short, 'the BNSS ' hereinafter).

2. Heard the learned counsel for the petitioner as well as the learned Special Public Prosecutor appearing for the Vigilance and Anti-Corruption Bureau.

3. Here, the prosecution alleges commission of offences punishable under Sections 316 (5), 314, 61(2), 3(5) and 344 of the Bharatiya Nyaya Sanhita, 2023 (for short, ‘the BNS ’ hereinafter) as well as under Sections 13 (1)(a) r/w 13(2) of the Prevention of Corruption (Amendment) Act, 2018 (for short, ‘the PC (Amendment) Act, 2018’ hereinafter), by the accused.

4. In the present case, the FIR was registered pursuant to the directions issued by the Division Bench of this Court in SSCR No.03/2026, dated 13.01.2026, acting on a report submitted by the Sabarimala Special Commissioner, which detected blatant acts of criminal misappropriation of the proceeds of ‘Adiya Sishtam Ghee’. Upon finding merit in the report, the Division Bench issued the following directions as recorded in paragraph No.20 of the order. The same reads as follows:

“20. The following directions are accordingly issued:

a) The Chief Vigilance and Security Officer shall forthwith forward the complaint dated 10.01.2026 to the Director, Vigilance & Anti-Corruption Bureau.

b) The Additional 7th respondent shall constitute a team of upright and competent officers and shall initiate steps to register a crime on the strength of the report dated 10.01.2026 submitted by the Chief Vigilance and Security Officer. The team so constituted shall conduct a meticulous, coordinated, and effective investigation into the matters referred to above and those disclosed in the said report. It is made clear that the team shall not disclose any details of the investigation to the public or the media.

c) The investigating team shall file a report before this Court within a period of one month from today, indicating the progress of the investigation.

d) In view of the law laid down by this Court in Jayaprakash v. State of Kerala , Venugopal V. and Others v. State of Kerala , Yakoob Purayil v. State of Kerala and in view of the nature of allegations, prior approval under Section 17A of the Prevention of Corruption Act, 1988 is not required in the present case.

e) The team so constituted shall be answerable only to this Court, and before filing the final report, prior permission of this Court shall be obtained.”

5. In paragraph Nos.3, 4 and 6 to 9 of the report submitted by the Investigating Officer, the allegations against the accused have been specifically dealt and the same are as under:

“3. It is submitted that SSCR No. 3/2026 was initiated by this Hon’ble Court suo motu following a report by the Devaswom Special Commissioner, which incorporated the findings of Report No. SP/SB/210/26/TDB/VIG dated 10.01.2026 from the Chief Vigilance and Security Officer (CVSO) of the Travancore Devaswom Board. The CVSO's inspection revealed a deficit of 13,679 packets of “Aadiya Shishttam Neyy” (ghee) [worth ₹100/- per packet] at the Maramath counter at Sannidhanam, valued at ₹13,67,900/-, which had not been remitted to the Devasom account. Further discrepancies were noted during the Mandala–Makaravilakku season (17.11.2025 to 27.12.2025), where a stock shortage of 22,565 packets, valued at ₹22,56,500/, was detected at the Temple Special Office (TSO). Specific allegations were also raised against Sunil Kumar K.R. @ Sunil Kumar Potti (Accused-13) a Devaswam

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