Kochi: Two-wheelers, laptops, sewing machines, food kits, water purifiers, organic fertilizers… everything at half price. An offer so tempting that any ordinary Malayali would fall for it, especially when welfare pensions are delayed, small enterprises are suffering, and inflation is rising in Kerala.
The face of this scam was 28-year-old Ananthu Krishnan. But could a single individual pull off a Rs 1,000-crore scam alone? People in the state are eager to discover the identities of others involved. With many senior political figures linked to the fraud, the public is also questioning whether the police will conduct a fair investigation.
During the first phase of the scam, Ananthu collected Rs 10 crore from several people and distributed items worth Rs 20 crore in return. The firms he claimed had contributed Rs 10 crore later told the investigating team that they had not provided any funds from their CSR budgets.
This raises the key question: Where did Ananthu receive the remaining Rs 10 crore? This is a crucial aspect of the case. Despite the distribution of Rs 1,000 crore, investigators only found Rs 3 crore in bank accounts. Where has the rest of the money gone? Who are the beneficiaries, and how much will the police be able to recover?
Unlike previous scams in Kerala, which targeted affluent individuals and those with unaccounted wealth, the CSR scam’s victims were ordinary people. These included individuals who paid Rs 60,000 for a two-wheeler worth Rs 1.2 lakh, Rs 30,000 for a Rs 60,000 laptop, and Rs 25,000 for a sewing machine priced at Rs 50,000. Women and students were among those swindled.
The scam was initially marketed through advertisements showing relatives and friends using scooters, sewing machines, and laptops—all at half price. Ananthu further gained trust by distributing food kits at Rs 1,500, half their actual price. Within a short time, he distributed 70,000 kits, which convinced many to purchase more from the fraudsters.
Warnings ignored
Both the state Special Branch and Intelligence noticed Ananthu’s suspicious financial activities. Bank authorities raised alarms after daily withdrawals of Rs 20-30 lakh from his accounts. In July last year, these concerns were reported by the Special Branch but were not forwarded to the Home Ministry. A report was only filed later after the bank’s warning, but no investigation was initiated until complaints emerged. According to reports, Ananthu used CSR funds from large companies, creating the impression that a significant number of people had benefited from his scheme.
Prameela’s complaint uncovers the scam
The fraud was uncovered thanks to the persistence of Prameela Girish Kumar, a former councillor from Muvattupuzha, and police inspector Basil Thomas. Despite threats and political pressure, Prameela remained firm in her complaint. She approached the police only after securing all the necessary documents. Even when Ananthu threatened suicide, she stood her ground, and he was eventually arrested after he continued the fraud even after a one-month grace period to return the money.
Ananthu’s connections and the role of Ananda Kumar
Ananthu’s involvement in the scam was made possible by Ananda Kumar, the chairman of the NGO Confederation and executive director of Sai Gramam Global Trust. Ananda Kumar played a key role in gaining public trust for Ananthu. Investigators have seized documents showing that Ananthu had full authority to implement the ‘half-price’ scheme. Despite knowing of Ananthu’s suspicious activities, Ananda Kumar continued supporting him.
In a notable incident, Ananda Kumar arranged a meeting between Ananthu and Prime Minister Narendra Modi during his visit to Thiruvananthapuram. While many prominent people couldn’t meet the Prime Minister, Ananda Kumar took Ananthu along and introduced him to Modi.
Ananda Kumar’s response
Ananda Kumar admitted that he failed to recognise Ananthu’s true intentions. “When you work with thousands of people, you may misjudge one person,” he said. “I resigned from the NGO Confederation when I realized his financial dealings lacked transparency and informed all member organisations.” He expressed his willingness to cooperate with the investigation to recover the stolen money. Regarding the Rs 2 crore donation Ananthu made to the Sai Gramam Trust, Ananda Kumar clarified that he had not solicited the money from Ananthu, and the trust only provided documents for tax deductions.
More complaints and new accusations
Meanwhile, more complaints have emerged, with over 1,000 people in Malappuram losing money in the scam. The police have registered 147 cases involving about Rs 50 crore, with similar cases reported in Palakkad and Alappuzha. Additionally, a case has been filed against retired Justice C N Ramachandran Nair, the patron of the NGO Confederation, for allegedly defrauding Rs 34 lakh. Nair, however, denied the charges, stating that he had never been involved in any decision-making processes and had resigned as advisor in July last year.