Accused in Kerala ‘CSR scam’ duped 200 NGOs, say police

The accused, identified as Ananthu Krishnan, 26, a resident of Idukki, allegedly cheated people and charitable societies across the state by promising to deliver two-wheelers, laptops and household appliances such as water purifiers and sewing machines at half the price, claiming that he was procuring them through corporate social responsibility (CSR) funds of big private firms, the officer added.

“The modus operandi was that Krishnan tied up with several charitable trusts as the coordinator of the National NGO Federation and promised them that he would offer two-wheelers and other products at half the price. The trusts would help him in identifying beneficiaries, pooling funds and giving publicity to the whole initiative. Krishnan went on to cheat people as well as the charitable trusts by failing to fulfil the promise,” said the officer.

“In Kunnathunad police station, we have received 130 complaints from people who said they had paid a charitable trust the money for two-wheelers and failed to get them after six months. Of the total 140 beneficiaries there, only 10 people actually got the two-wheelers. The trust has also filed a complaint with us. In that case, we have clubbed all the complaints under a single FIR. Similarly, there are complaints coming in from areas such as Vazhakulam, Muvattupuzha and North Paravur. So far, we have filed around 15 FIRs in Ernakulam Rural,” the officer added.

The officer said that police are verifying the 19 accounts used by the accused and examining the mode of transactions in them as part of evidence collection. “The size of the scam is unclear at the moment as more and more complaints are pouring in,” he said.

A court in Ernakulam on Thursday sent Krishnan to five-day police custody. He is expected to be taken to his office in Muvattupuzha for interrogation.

Meanwhile, BJP state vice-president AN Radhakrishnan denied that the charitable outfit Society for Integrated Growth of the Nation, of which he is the chairman, has any connection to the scam.

“We are only an implementing agency and we are not a member of the NGO Federation. We are also a victim of the scam just like the 200-odd other charitable organisations across the state. We have provided two-wheelers and other items to many people. But at one point, the initiative got stalled. Since then, we have been returning money to the beneficiaries,” he said.

Perinthalmanna MLA and IUML leader Najeeb Kanthapuram, whose charity firm MUDRA was also associated with the scheme of giving away two-wheelers at half the price, said his firm was also a victim of the alleged fraud.

“This is a very suspicious scam. The first hints of the scam came in September when the products that we had asked for stopped coming. When we asked them (Krishnan and others), they said the CSR funds are being approved and asked us to wait. So, we waited. Now, scores of people have filed complaints. All those who lost money should get back their rightful money and I will be at the forefront of that legal battle,” he said.