A large-scale CSR scam, known as the half-price scam, has rocked Kerala, exposing a fraudulent scheme where thousands were tricked into paying "half price" for products like scooters, laptops, and home appliances under the false promise of Corporate Social Responsibility (CSR) funding.

 

The Mastermind: Ananthu Krishnan

Ananthu Krishnan, a 26-year-old from Idukki, orchestrated the fraud using a network of fake NGOs to convince people that major corporations were funding the discounts. Investigations revealed that these CSR funds never existed, and over 30,000 victims lost money.

Krishnan, who had a history of fraud in Muvattupuzha and Idukki, used more than two dozen bank accounts to siphon funds. His lavish lifestyle, including expensive cars and property purchases, raised suspicions, eventually leading to his arrest.

 

How the Scam Worked

Krishnan gained public trust by initially delivering products to early applicants. His tactics included:

• Setting up multiple NGOs with names like Sardar Patel and Abdul Kalam NGOs.

• Promising half-price deals (e.g., scooters worth Rs 1.2 lakh sold for Rs 60,000).

• Charging a registration fee of Rs 500 per applicant.

• Using money from new applicants to fulfill previous orders, similar to a Ponzi scheme.

Authorities estimate losses of Rs 600 million, with the total fraud amount potentially reaching Rs 4-5 billion.

 

Political and NGO Links Under Scrutiny

Krishnan allegedly funneled money to political leaders, raising concerns about political involvement. He claimed to be the national coordinator of the National NGO Federation, misleading victims into believing he controlled corporate CSR funds.

Many companies, whose names were misused, were unaware of their supposed involvement. Investigations have now expanded to include NGO officials and political figures.

 

Ongoing Investigation

With over 100 cases registered, Kerala’s Director General of Police (DGP) Shaik Darvesh Sahib has transferred 34 key cases to the State Crime Branch for a coordinated probe. The total amount swindled is currently estimated at Rs 37 crore, but as more complaints surface, this figure is expected to rise.

This scam has shattered public trust in NGO initiatives and raised serious accountability concerns in CSR practices across the state.

 

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