The Special Vigilance Court in Thiruvananthapuram on Wednesday ordered a preliminary Vigilance inquiry against Vellappally Natesan, general secretary of the SNDP Yogam, outfit of Kerala’s Hindu lower caste Ezhavas, in connection with an allegation of fraud in the microfinance scheme of the Yogam.
The court’s order came on a petition submitted by Opposition leader VS Achuthanandan who charged Vellappally and his associates with pocketing over Rs 15 crore taken as loan from the State Backward Communities Welfare Corporation for distribution at low interest through the Yogam’s microfinance scheme.
The preliminary Vigilance probe is against Vellappally, Yogam president MN Soman, microfinance scheme coordinator KK Mahesan and N Najeeb, former managing director of the corporation. The court ordered submission of the probe report before March 5 and initiation of a formal case against Vellappally and others if evidences of fraud were found.
The Vigilance legal advisor had earlier submitted a report to the court saying that irregularities with funds worth Rs 80.30 lakh had been found in the microfinance scheme. Achuthanandan’s lawyer S Chandrasekharan Nair claimed that the court had accepted his arguments while Vellappally said he had not committed a fraud of “even five paise”.
The Opposition leader’s petition alleged that the corporation had allotted Rs 15 crore as loans to the SNDP Yogam at two percent interest and Vellappally and his associates had loaned out this amount to Yogam members at interests up to 18 per cent despite the corporation’s instruction that the interest rate should not exceed five per cent.
“I haven’t committed any fraud of even five paise,” said Vellappally. “What Achuthanandan is doing is to go to the court with papers given to him by other people. His only agenda is character assassination,” Vellappally said, adding that he would prove his innocence legally.