Kerala HC disqualifies SNDP Yogam Board

The Kerala High Court on Thursday disqualified the entire Board of Directors and office-bearers of the Sree Narayana Dharma Paripalana Yogam (SNDP Yogam ) , including its general secretary Vellappally Natesan, for failing to comply with statutory requirements under the Companies Act, 2013.

The Sree Narayana Dharma Paripalana Yogam (SNDP Yogam) is a prominent socio-cultural organisation representing the Ezhava community in Kerala. Justice T R Ravi passed the order while disposing of a batch of petitions, including one filed by late academic M. K. Sanoo , which alleged irregularities in the organisation’s functioning.Apart from Natesan, the court also disqualified Thushar Vellappally, M. N. Soman and Santhosh (Arayakkandil Santhosh) from the Board.

The disqualification came primarily because the organisation failed to file financial statements and annual returns for three consecutive financial years, violating Section 164(2) of the Companies Act , which bars directors from continuing or being reappointed for five years if such defaults occur. Petitioners also highlighted that SNDP Yogam filed returns for the years 2006–07 to 2016–17 only in 2020, reflecting prolonged non-compliance.

The directors were further found to lack valid Director Identification Numbers (DINs) as required under Section 152(3) , a mandatory requirement for company directors. While the respondents argued that the delay was regularised under the Companies Fresh Start Scheme (CFSS), 2020 , the court clarified that penalties may be waived but disqualifications already incurred cannot be removed. Additionally, the court quashed a 2024 order of the Inspector General of Registration (IGR) that had earlier cleared the directors for certain financial years, calling it legally unsustainable.

The court directed the state government to appoint the required number of directors to manage the organisation until fresh elections are held. The IGR was also asked to initiate action under the Companies Act, including imposing fines ranging from Rs 1 lakh to Rs 5 lakh on those who continued to hold office despite disqualification.

Kerala-based businessman Gokulam Gopalan, known for opposing Vellappally Natesan on various issues, welcomed the order, calling it “just the beginning” and urged that a proper election be conducted to form a new committee.