Kochi | The Kerala government has told the High Court here that there is no evidence to prosecute K A Ratheesh and R Chandrasekharan, the former MD and Chairman, respectively, of the KSCDC, in a corruption case lodged against them by the CBI in connection with tenders issued for procurement of cashew nuts.

The government made the submission in an affidavit filed in the High Court in response to a plea seeking contempt action against the Industries Department for declining sanction for prosecution of the two former officials of the Kerala State Cashew Development Corporation (KSCDC).

The contempt plea, by one Kadakampally Manoj, has claimed that the government has not considered the points made by the High Court in its 2020 judgement setting aside the government's 2020 decision declining to grant sanction for prosecution.

The 2020 judgement of the High Court had come on Manoj's plea challenging the government decision.

In its latest affidavit, the government has contended that the petitioner was under the "erroneous impression that because the final decision was not in accordance with his wishes, there is non-compliance with the judgment".

"A lawful reasoned decision has been taken after considering all relevant points, and that constitutes compliance with the judgment.

"The petitioner has not pointed out any specific direction of this court which has been wilfully disobeyed. Instead, he is attempting to re-agitate the merits of the decision taken by the competent authority under the cover of contempt proceedings," the government said in its affidavit.

It also stated in the affidavit that all the decisions to purchase raw cashew nuts were taken unanimously by the Board of the KSCDC which includes nominees from department of Finance, Industries and trade union representatives.

"It is amply clear that the Board of directors has exercised their power of purchase based on the government orders...

"Hence, based on the global cashew market fluctuations and exchange rate fluctuations, the board unanimously took the decisions in order to achieve maximum employment to cashew workers," it said.

Therefore, the government "cannot find any malpractice or misconduct in the decisions" of the Board or the two former KSCDC officials in the purchase of raw cashew, the affidavit stated.

".. the government is of the firm and clear stand that the accused 1 (Ratheesh) and 3 (Chandrasekharan) cannot be blamed for fulfilling the policy of the government in letter and spirit.

"Further, the government is of the considered opinion that there is no evidence to prosecute both the accused 1 and 3 under the Prevention of Corruption Act," it said.

The affidavit also stated that there was "absolutely no evidence" in the final vigilance report that the two accused abused their position and made pecuniary advantage for themselves or another person.

"No supporting materials or evidence are produced for the allegation with regard to diversion of funds, sampling procedure and the sale of cashew kernels also.

"In these circumstances the sanction sought for to prosecute K A Ratheesh (Al) former Managing Director KSCDC, and R Chandrasekharan (A3), former Chairman KSCDC in Crime No.RC 08(A)/2016/CBI/ACB/COCH was rightly declined," the government said in its affidavit.