Kerala High Court Removes SNDP Leaders for Not Filing Financial Reports

SNDP leaders are out! The Kerala High Court removed Vellappally Natesan and others because they did not file financial reports for years, a big change for the organization.
By Newsroom | Law, Kerala |

The Kerala High Court has ordered the removal of Vellappally Natesan, general secretary of the Sree Narayana Dharma Paripalana Yogam (SNDP Yogam), along with other office-bearers and the entire board, from their positions. This action stems from the organization's failure to submit financial statements within the legally mandated timeframe. The court's directive also includes the appointment of a new Board of Directors for the yogam.

Kerala HC orders removal of Vellappally Natesan, other SNDP Yogam office-bearers from their posts - 1

The judicial pronouncement hinges on Section 164(2)(a) of the Companies Act, which stipulates that an individual is disqualified from holding a directorial position if a company fails to file its financial statements or annual returns for three consecutive years. Petitioners highlighted that this lapse, particularly concerning the non-submission of returns between 2013 and 2016, renders the current office-bearers ineligible to continue in their roles. Consequently, directors have been deemed disqualified from 2009 onwards. The court further directed the Inspector General of Registration to undertake consequential actions following the declaration that these individuals have vacated their offices due to disqualification.

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Kerala HC orders removal of Vellappally Natesan, other SNDP Yogam office-bearers from their posts - 2

This development signifies a substantial administrative shift within the SNDP Yogam, a prominent social organization in Kerala representing the Ezhava community. The order follows a petition filed by the SNDP Yogam Samrakshana Samithi, citing the non-submission of the organization's financial statements as the primary grievance. While the Inspector General of Registration had previously rejected a plea to disqualify the office-bearers in February 2024, the High Court has now overridden this decision.

Kerala HC orders removal of Vellappally Natesan, other SNDP Yogam office-bearers from their posts - 3

Vellappally Natesan, identified as the general secretary, and Thushar Vellappally, who held the position of vice president, are among those removed. The disqualification extends to other key figures including yogam president Dr MN Soman and Devaswom secretary Arayakkandil Santhosh.

Kerala HC orders removal of Vellappally Natesan, other SNDP Yogam office-bearers from their posts - 4

Beyond these immediate administrative consequences, a separate legal challenge concerning Vellappally Natesan's selection for the Padma Bhushan, India's third-highest civilian award, was also noted. The Kerala High Court had sought a response from the Centre regarding a public interest litigation opposing this conferment, which was announced last month. Natesan is also recognized as the founder of the Bharath Dharma Jana Sena (BDJS), an allied party with the National Democratic Alliance (NDA) in the state.

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Frequently Asked Questions

Q: Why did the Kerala High Court remove Vellappally Natesan and other SNDP leaders?
The court removed them because the SNDP Yogam failed to submit its financial statements and annual reports for many years, breaking company laws.
Q: What does the court order mean for the SNDP Yogam?
The court has ordered the removal of the current general secretary, Vellappally Natesan, and all other office-bearers and the entire board. A new Board of Directors will be appointed to manage the organization.
Q: Which specific financial reports were not submitted?
The court order mentions the failure to file financial statements and annual returns, specifically noting the period between 2013 and 2016 as a key example of this lapse.
Q: Who filed the case against the SNDP leaders?
The case was filed by the SNDP Yogam Samrakshana Samithi, which argued that the non-submission of financial statements made the current leaders ineligible to hold their positions.
Q: What happens to the disqualified leaders now?
The leaders, including Vellappally Natesan and Thushar Vellappally, are disqualified from holding their positions. The Inspector General of Registration will take action based on the court's declaration that they have vacated their offices.