Justice S Abdul Nazeer granted the interim stay on a petition filed by Revanna seeking quashing of the proceedings initiated by the Cooperation Department on the basis of a report submitted after re-auditing of KMF accounts between 1994-2001 when he was the Chairman.
Revanna in his petition contended "political vendetta" as the reason for such an action, which he also termed as "illegal and arbitrary".
Under direction from the Government, the Cooperation Department, in whose jurisidiction the KMF fell, had ordered re-verification of audited accounts, findings of which brought to the fore that the alleged irregularities had caused a loss of Rs 38.25 crore to the KMF.
The Cooperation Department had issued notices to Revanna seeking his explanation on the re-audited report. Meanwhile, a batch of petitions was filed before the court by two persons on the basis of these notices praying for action against Revanna.