The nearly ₹450-crore scam fooled thousands, including those in powerful positions with promises of goods at half the market value.
Published Feb 19, 2025 | 11:21 AM ⚊ Updated Mar 02, 2025 | 7:35 PM
Ananthu Krishana (second from right), during one of the events he organised. (Supplied)
Synopsis: Ananthu Krishnan, a charismatic NGO worker, masterminded Kerala’s biggest financial fraud by offering essential goods at half price, deceiving thousands, including politicians, police officers, and even a retired high court judge. His elaborate scheme, built on trust through real transactions and high-profile endorsements, raise unsettling questions about whether Krishnan acted alone or was merely the face of a far-reaching conspiracy.
It all began with a single letter to the Chief Minister’s Office in October 2024. A resident of Muvattupuzha, Ernakulam, raised suspicions about schemes floated by the National NGO Confederation (NNGOC), particularly the ‘Women on Wheels’ initiative.
Almost simultaneously, a group under the banner of Muvattupuzha Socio-Economic Development Society (SEED) approached the local police, alleging deception by a 28-year-old named Ananthu Krishnan.
What began as scattered complaints soon snowballed into a full-blown financial scandal – now infamously known as the CSR fund scam or ‘Half-Price’ scam. The fraud, spanning the length of Kerala, has left thousands of victims in its wake, including unsuspecting common people and high-profile figures such as political leaders, police officers, and even a retired high court judge.
As the State Crime Branch and the Enforcement Directorate launch parallel investigations, shocking details continue to emerge.
The scam has not only exposed deep flaws in financial oversight but also raised an unsettling question – are Keralites too trusting, or was this deception too elaborate to resist?
At the centre of this elaborate web of deception stands Ananthu Krishnan, the prime accused.
He played the long game – spending crores upfront to ensure the scheme looked foolproof. Amidst soaring inflation, he offered two-wheelers, laptops, water purifiers, and sewing machines – practical “luxuries” at half price. It was a deal too good to ignore.
For every ₹10 crore he collected, he distributed products worth ₹20 crore. A brilliant illusion. A promise transformed into a dream.
A poster for the scam. (Supplied)
To cement trust, he orchestrated grand inaugurations, featuring Ministers, MPs, MLAs, and local body leaders. The media followed suit unquestioningly. The marketing was flawless.
By collaborating with organisations and local bodies, he lured thousands more. The scam spread like wildfire.
Then, the bubble burst.
Hundreds thronged police stations, their dreams shattered, their money gone. Leaders who had endorsed him found themselves in the line of fire. The bitter truth dawned – they had been deceived.
Yet the real question looms large – was Krishnan the lone mastermind, or were there bigger fish lurking in the shadows?
Was he merely the face of the scam while powerful hands pulled the strings from behind? Or was this an elaborate solo act by a mastermind who knew exactly how to bait and bleed a gullible crowd?
The shocking financial fraud has prompted an extensive probe by law enforcement agencies.
To date, 34 cases have been registered across multiple police stations, with the highest number reported in Idukki and Ernakulam Rural police limits with 11 each.
Police estimates place the total swindled amount at ₹37 crore, while unconfirmed reports suggest the fraud could exceed ₹100 crore.
As complaints poured in from various districts, officials pushed for a centralised investigation to ensure a streamlined probe and protect victims.
The State Police Chief has directed the Additional Director General of Police (Crime Branch) to take over the investigation.
A Special Investigation Team (SIT) led by M J Sojan IPS, SP, CB CU-II, Ernakulam, is spearheading the probe under the supervision of ADGP Crime Branch J Venkatesh IPS.
The investigation spans all 14 districts, with teams comprising officials from the Economic Offence Wing, Crime Branch Units, CB Central Units, and Cyber Division.
Authorities have deployed 81 officers to unravel the depths of the fraud.
The Enforcement Directorate (ED) has launched a parallel investigation into the scam, suspecting that the total amount collected from depositors could reach ₹450 crore.
On 18 February, the agency conducted searches at multiple locations in Kerala to track the flow of funds and identify beneficiaries.
Sources indicate that the ED’s radar has picked up the role of politicians, electronic dealers, automobile dealers, cooperative banks, and even a fertiliser manufacturing company. The searches aim to determine the total number of victims, the extent of funds collected, and where the money was diverted or parked.
With the SIT and ED tightening the noose around the accused, more shocking revelations are expected in the coming days.
For the common man, the fallout from the ‘Half-Price’ scam has been nothing short of devastating.
Thousands of families, drawn in by the allure of an irresistible deal, now face the harsh reality of lost hard-earned money. Many victims, especially from rural and middle-class backgrounds, are left with feelings of betrayal and loss.
The scam stands as a grim reminder of how the hunger for quick solutions can be exploited by those with ulterior motives.
Born into poverty, Ananthu Krishnan joined a mushroom cultivation training programme after completing his studies and worked with Bharat Sevak Samaj (BSS). His ambitions, however, stretched far beyond agriculture.
His first step towards influence came through creating a WhatsApp group – ‘Abdul Kalam Youth Forum.’
His charm and persuasive skills reportedly won the trust of young people and elderly residents alike in Kudayathoor, a village in Thodupuzha, Idukki.
A poster for the scam. (Supplied)
Behind this image of a promising leader, however, lurked a web of deception.
Investigators later linked him to a cheque-bouncing case, though he managed to convince many that he was a victim of a conspiracy.
He then immersed himself in researching government and private funding projects for agriculture, social work, and service sectors.
With his fluency in English and Hindi, he built a network of political contacts.
His growing influence in NGO circles earned him the title of National Coordinator of the ‘National NGO Confederation.’
While projecting the image of a social entrepreneur, investigators claim he was siphoning off funds to finance a lavish lifestyle and acquire property.
His downfall began in Muvattupuzha, where a former municipality councillor and a police officer unmasked his fraudulent schemes.
A complaint received at the Chief Minister’s Office prompted an investigation led by officer Basil Thomas.
Prameela Girish Kumar, a former municipal councillor and member of Muvattupuzha SEED, played a crucial role in exposing Krishnan.
Sensing inconsistencies in his grand promises, she investigated further, uncovered the fraud, and provided the police with evidence needed to bring him to justice.
The sensational scam has taken a political turn, with names of leaders from the CPI(M)-led LDF, Congress-led UDF, and BJP surfacing in connection with the fraud.
While investigators maintain these leaders may not have been directly involved, their association with the accused reportedly helped the fraudsters gain credibility and lure unsuspecting victims.
Adding to the controversy, retired Kerala High Court judge Justice CN Ramachandran Nair has been named the third accused in the case.
His alleged involvement stems from his role as patron of the National NGO Federation, an organisation founded by key accused Ananthu Krishnan.
The Kerala High Court has now raised serious concerns over the FIR registered against the former judge.
A Division Bench comprising Justice A Muhammad Mustaque and Justice P Krishna Kumar questioned whether the police exercised proper discretion before filing the case.
“Naming a former constitutional office-holder as an accused could affect the judiciary’s reputation,” the bench observed while hearing a PIL seeking to quash the FIR on 18 February.
The case, registered on 2 February 2025, at Perinthalmanna police station, invokes Sections 318(4) (cheating) and 3(5) (offence committed in furtherance of common intention) under the Bharatiya Nyaya Sanhita (BNS).
A group of High Court advocates who filed the PIL argued that the FIR was lodged without a preliminary inquiry, violating the Supreme Court’s Lalita Kumari v State of UP (2014) judgment. They claimed there was no material evidence linking the retired judge to financial misconduct within the NGO.
While the court has not yet admitted the PIL, it has sought instructions from Director General of Prosecutions TA Shaji on whether the case was registered after proper verification. The matter is scheduled for hearing in two weeks.
Beyond the legal battle, the scam has created major embarrassment for political leaders across party lines.
Congress leader Lali Vincent, who served as Krishnan’s legal advisor, faces a severe loss of credibility as her association with the accused comes under scrutiny.
BJP leader AN Radhakrishnan, known for his frequent visits to Krishnan’s flat at High Court Junction, is also under the spotlight.
Adding intrigue to the case is the involvement of KN Anand Kumar, chairman of Saigram Global Trust, who has long been known for his high-profile political connections.
Sources claim that during one of Prime Minister Narendra Modi’s visits to Kerala, Anand Kumar facilitated a brief meeting between Krishnan and the PM – an association that likely bolstered the accused’s credibility.
With political leaders, a retired High Court judge, and a well-connected NGO at the centre of the scam, the case has shaken Kerala’s legal and political circles.
(Edited by Dese Gowda)
