A new CSR scam has been discovered by the authorities wherein more than Rs 1000 crore was siphoned off unsuspecting victims. The victims promised electric scooters, sewing machines, and laptops at half price stating that the remaining amount will be covered by CSR funds from major corporations.
The scam was being operated under the banner of the National NGO Confederation, which is a coalition of multiple voluntary organisations. The scheme lured victims in by promising them the products at half price, but required them to pay a registration fee of Rs 6000 at the outset. In order to establish credibility to the scheme, some of the early applicants received the products at the promised price. However, eventually as more applicants signed up for the scheme, the funds disappeared and the promised products were not delivered.
Investigation
As the fraud came to light, the authorities investigated the bank accounts of the prime accused – Ananthu Krishnan – which revealed that he had received Rs 400 crore under the scheme. However, when the investigation took place, only Rs 3 crore were remaining in the account. These amounts were collected through various NGOs, which made the investigation more challenging, making it difficult to uncover the full extent of the scam.
The authorities have now intensified their investigation. They are conducting raids at Ananthu Krishnan’s apartments and offices. Given the scale of the scam, the case is now expected to be handed over to the Crime Branch.
According to the reports, the scam was strategically designed wherein the National NGO Confederation was set up in Muvattupuzha, which recruited small-scale voluntary organisations from each district. One NGO based in Thiruvananthapuram was also used to collect funds. When the fraud was exposed, the office bearers of this organisation quickly filed complaints with the Chief Minister and the DGP, with an attempt to distance themselves from the scandal.
Impact of the Scam
The scam has left a devastating impact across the state of Kerala. Thousands of complaints have been registered from different districts with people claiming to have been duped under the scheme. Kannur district saw the highest number of complaints, with over 2,000 cases registered, while Idukki recorded 350 complaints, and Thiruvananthapuram had eight reported cases.
The investigators have estimated that Rs 700 crore was collected from Ernakulam district alone.
