Agencies, 13 February 2025 : At the height of Lok Sabha elections in April last year, Bharatiya Janata Party (BJP) workers in Kerala were busy engaging with residents in some districts, giving publicity to many of the Union government schemes. One was a ‘Two-Wheelers for Half Price’ scheme that promised to deliver two-wheelers at half the cost, as it was subsidised by Corporate Social Responsibility (CSR) funds. It quickly caught the people’s fancy. It was not just two-wheelers; it was laptops, sewing machines, water purifiers, and more, available for half price under the scheme. Even sceptics turned into believers when the endorsement of the scheme was no longer confined to BJP workers. Soon, leaders from various political parties like the Kerala Education Minister V Sivankutty, Leader of Opposition VD Satheesan, Congress MP Hibi Eden and even police officers participated in promotional events to popularise it. And thousands of people began signing up.
It took several months for people to realise that their money was lost and they were the victims of an elaborate Ponzi scheme. While most of them were duped, a few did receive benefits, adding to the illusion of authenticity. The first of the complaints was filed in November and then they started coming in rapidly across districts. On January 31, the Muvattupuzha police arrested 28-year-old Ananthu Krishnan from Choorakulagara in Idukki district.
TNM looks into how Ananthu devised a ‘scheme’ that ended up defrauding thousands of Keralites and how it rapidly unravelled into a scam that police estimate could amount to a loss of Rs 2,000 crores. At the core of it is a confederation of NGOs, a successful businessman turned philanthropist, a young con artist and his three companies.
How it started
Ananthu Krishnan, who hails from the Idukki district of Kerala, ran three consulting agencies named Grassroot Innovision (OPC) Private Limited, Professional Service Innovations, and Social Bee Ventures. In 2023, he mooted an idea to the National NGO Confederation (NNC), of which he was a national coordinator. The idea was simple. People would pay 50% of a commodity like a bike or a laptop; the rest would be donated by companies through their CSR funds. What no one questioned was the unbridled power that Ananthu Krishnan had in NNC and that the money for the commodities was being paid to the three private agencies he owned and not to the NNC directly.
Ajmal Abbas, India Today, New Delhi, Feb 13, 2025 : Hundreds of foot soldiers acting as promoters, and monitored by coordinators at the village, block, and district levels. Scores of politicians from across party lines, including a dozen prominent ones. This is what created the structured network which was used to pull off one of the largest scams in Kerala’s recent history. The half-prize scam. Over 40,000 people were duped in the scam which is estimated at over Rs 1,000 crore, meticulously orchestrated by a 26-year-old for years.
Ananthu Krishnan, a young graduate from Kerala’s Idukki district, exploited Corporate Social Responsibility (CSR) funds to swindle thousands of middle-class families, leveraging political patronage, NGOs, and a retired High Court judge. He promised scooters, laptops and home appliances at half price, claiming that the remaining money would be met from the CSR funds of networks of companies.
The entire expanse of the state-wide scam has now been laid bare with over 6,000 complaints from across Kerala and probes by the State Crime Branch and the Enforcement Directorate (ED). It was a sophisticated Ponzi scam, to which an entire state fell prey, and thousands of people are now left in distress and anger. India Today Digital spoke to several victims to understand how the half-price scam worked, and how they fell for it. Their names have been changed in the report to conceal their identity.
KOLLAM STUDENT EXPLAINS HOW SHE FELL FOR HALF-PRICE SCAM
Kavya Vinod, a 23-year-old student from a village in Kollam, a district from which several hundreds were scammed, needed a scooter. The lack of public transport to and from the nearest town made that a necessity.
Two years ago, she came to know about a scheme through her friends, promising brand-new scooters at half price, endorsed by local leaders. For Kavya, it seemed like a perfect solution. She discussed it with her family and friends and did some basic online research, primarily on YouTube. Everything appeared legitimate.
“The coordinators reached out to us. The offer was attractive. Scooters that typically cost over Rs 1 lakh were available for half the price. We paid a Rs 320 membership fee. They then gave us an account number, and we transferred the money,” she said.
Up to this point, the process had been smooth and swift. However, there was no communication for the next two months. Concerns arose within the WhatsApp group of ‘beneficiaries’, and after repeated inquiries, the promoters announced an upcoming event for scooter distribution.
“They finally set a date and announced an event at a community hall. The presence of panchayat members and other local figures reinforced our trust. We believed everything was genuine,” she said. However, even at this event, Kavya didn’t get her scooter.
“They distributed laptops and sewing machines. Then, they asked us to buy stamp paper. An advocate was present, and we were given promissory notes. They assured us the vehicles would be delivered within 100 working days,” added Kavya.
HOW ANANTHU KRISHNAN, HIS ASSOCIATES GAINED TRUST
The event that Kavya attended was one of hundreds such held across Kerala over the past few years.
In the early stages of the scam, Ananthu Krishnan and his associates distributed sewing machines, mixer grinders, and other household appliances–a strategic move to gain public trust. These events were frequently attended by local politicians, police officers, and even ministers.
Visuals of these distributions were widely publicised through newspapers and digital platforms, also spreading rapidly across countless WhatsApp groups of so-called “beneficiaries”.
The event Kavya attended was cleverly staged.
The scheme was named ‘Women on Wheels’, and there was a verification desk where their Aadhaar details were checked. A few scooters were put on display, allowing applicants to choose the colour they wanted, and even take test rides. Kavya received a token and was assigned number 250.
She and her friends waited a few more weeks, but there was still no update.
“Then, silence. When we inquired, they (the promoters) shouted at us, saying they were trying to help and that we wouldn’t receive anything unless we paid the full amount. They again claimed the scheme was backed by the central government and that CSR funds in crores were available,” a helpless Kavya told India Today Digital.
She added that two distribution dates were announced and postponed with excuses.
The first postponement was attributed to the cancellation of all events following the death of former Prime Minister Manmohan Singh. The second postponement was blamed on the unavailability of the venue due to Republic Day parade preparations.
With the scheme now being exposed as a scam, Kavya has filed a complaint and is waiting for her refund.
NUMEROUS YOUTUBE VIDEOS PROMOTED HALF-PRICE SCAM
A couple of months before the scam was exposed, Kavya started noticing reports of cheating cases against the scheme’s promoter, Ananthu Krishnan.
However, the promoters and their associates dismissed these reports as fabricated and filed due to personal rivalry. Kavya’s online searches revealed numerous YouTube videos encouraging people to join the “half-price” scheme.
The scheme specifically targeted middle-class women with low-paying private sector jobs. Those who were unemployed or with government jobs were deemed ineligible, according to applicants who spoke to local media.
So, some without jobs even produced fake employment letters to apply for the half-price scheme for scooters and sewing machines, hoping they could earn a living.
Rajila, a salesgirl at a local fabric shop, sold her cows to raise money for the half-price scheme.
Another victim took out a loan, using her children’s gold ornaments, which were gifts, as collateral.
Such stories abound, with Kerala Police estimating at least 40,000 people being duped across the state.
ANANTHU KRISHNAN BUILT SOCIAL LEGITIMACY FOR HALF-PRICE SCAM
Ananthu Krishnan didn’t rise as a notorious scammer just from nowhere, it was planned for years.
Hailing from a nondescript village, he initially participated in social welfare events organised by panchayats and the Kerala Women’s Commission, building social legitimacy.
Some reports claim that in 2012, he was part of the personal staff of Kerala Women’s Commission member Prameela Devi. However, this claim has been rejected, though it is acknowledged that Krishnan was involved in certain activities.
Krishnan later contested the Assembly elections as a BJP candidate.
He reportedly ran a fungiculture business and organised promotional events across the state. Additionally, some reports accuse him of running a chit fund scam involving lakhs in his local area. However, the police are yet to verify these allegations.
HOW ANANTHU KRISHNAN PLANNED TO PROFIT FROM HALF-PRICE SCAM
In June 2022, Krishnan allegedly introduced a Ponzi scheme and first engaged with Sathya Sai Orphanage Trust, popularly called Sai Gramam, whose director Ananda Kumar is also under scanner for the half-prize scam.
He proposed approaching companies, including scooter manufacturers, to solicit their corporate social responsibility (CSR) funds for those in need. His plan apparently involved acquiring goods either free or at a negligible cost, then charging beneficiaries half the maximum retail price (MRP), with the remaining margin going to him.
It’s unclear how he presented this idea to the high-profile individuals he contacted, or whether they were to share the profits.
The next step was to organise social service organisations across the state to implement this plan.
ANANTHU KRISHNAN GOT 2,000 NGOs TO SPREAD SCAM SEED
Ananthu Krishnan, along with Sai Gramam’s Ananda Kumar, formed an outfit called the National NGO’s Confederation. While Krishnan became its national coordinator, Kumar was the state coordinator.
Nearly 2,000 NGOs joined the network.
Hundreds of meetings were held across Kerala under their leadership, where they explained the half-price scheme. Local NGOs and self-help groups (SHGs) were designated as points of contact and each had their promoters.
Krishnan then started a grassroots-level scheme called the Socio-Economic Environment Development (SEED) Society. SEED would have agents or promoters who would spread the word about the programme in their particular areas.
In each panchayat, there were at least five to 10 promoters, with the hierarchy reaching Krishnan through district and block-level middlemen.
HALF-PRICE SCAM DEFRAUDED PEOPLE EVEN IN REMOTE KERALA VILLAGES
Numerous WhatsApp groups sprang up, and the internet was flooded with content endorsing the half-price schemes. Newspapers frequently reported on the distribution of items.
As news spread, applications flooded in, regardless of urban or rural location.
Even people from remote villages bordering other states, with primarily Adivasi populations, became victims.
For example, in Kanthalloor, a village nestled in the Western Ghats, at least 90 victims have been identified. In urban and semi-urban areas, some police stations recorded 250 cases a day.
Coordinators and promoters were promised a percentage of the funds collected within their jurisdictions. Nominal processing fees were also collected.
Leveraging prominent politicians, the network of Kerala’s renowned Kudumbashree women’s empowerment groups, and Akshaya centers (a digital governance network), people joined en masse.
The money was collected in the name of three companies – Socianbee Ventures, Professional Service Innovation, and Grassroot Innovation – all owned by Ananthu Krishnan.
Preliminary investigations indicate that the entire amount was funnelled directly to Krishnan, and other organisations only managed the small handling fees.
The coordinators included sitting panchayat presidents and members and office bearers of local associations.
However, many now claim they were completely unaware of the vicious scam Krishnan was orchestrating under the guise of a CSR project.
“We were equally scammed and duped; people are now questioning us,” one panchayat member told the media.
POLITICIANS OF ALL HUES JOINED ANANTHU KRISHNAN’S SCHEME
Senior Congress leader Lali Vincent was the first prominent name to surface after the scam was exposed. She was reportedly active in Krishnan’s activities and allegedly held multiple meetings with him.
However, Vincent, a lawyer by profession, denies any wrongdoing, claiming she was merely acting as legal advisor for Krishnan’s project. A case has been registered against her, but the High Court has granted her protection from arrest.
Kerala BJP leader AN Radhakrishnan was another frequent attendee at Krishnan’s distribution events and even shared promotional material for the scheme on social media.
He heads an NGO, Sign, which was part of the confederation Krishnan formed for the scam. The BJP leader claims he was unaware of the scam and believed the CSR project was to benefit the public.
Local CPI(M) leaders also cooperated with Krishnan on multiple occasions and at various events. Many of them have been charged as complaints flood in across the state.
Another prominent figure was Justice CN Ramachandran Nair, a retired High Court judge, who was an advisor to Krishnan’s NGO confederation. He also denies any involvement in the scam, claiming he disassociated himself from it earlier.
Kerala ministers V Sivankutty and Kadannappalli Ramachandran, Opposition Leader VD Satheeshan, Muslim League MLA Najeeb Kanthapuram, Congress MP Hibi Eden, Tirur MLA Kurukkoli Moideen, Thavanur MLA KT Jaleel, Kozhikode MP MK Raghavan and police officers, including IGP K Sethuraman, Munambam DySP S Jayakrishnan, were among the few prominent personalities who participated in the product distribution events.
There are allegations that political parties and leaders received lakhs of rupees in donations.
HOW KERALA’S HALF-PRICE SCAM WAS BUSTED
A police complaint against Ananthu Krishnan was filed at a police station in Idukki district in November, followed by a couple of other complaints. Another complaint was submitted to Chief Minister Pinarayi Vijayan. Sensing the gravity of the scam, Vijayan chaired a meeting with top police officers, and decided to hand over the probe to the state crime branch.
The scammer was arrested on January 31 and remains in custody, with the local court rejecting his bail plea.
Subsequently, the Enforcement Directorate (ED), the central agency probing financial crimes, also joined the investigation.
However, though the probe is still at a preliminary stage, officials have not confirmed where the money collected by Krishnan has gone. The investigation has uncovered some of his real estate and vehicle purchases. However, a large chunk of the massive sum remains untraced.
Just before his arrest, Krishnan released a video message rejecting the mounting allegations, claiming that there was merely a delay in the disbursal of CSR funds and that the promised goods would be distributed.
“It’s quite natural for people to have apprehensions when they experience inordinate delays in a project after making payments. We all live in villages, and you might have paid these amounts by taking out a huge portion of your hard-earned savings. There will not be a situation where you lose even a penny,” he claimed in the video.
Another voice clip also surfaced in which he is heard urging people to withdraw their cases and let him return so that the project could be completed.
The details of the scam, including where cores of money went, will only emerge after a thorough investigation. What we know for now is that a young graduate pulled off a massive scam duping common people and making eminent people take part in it.
