KOCHI: Scooters, laptops, and home appliances offered at half price seemed like a once-in-a-lifetime opportunity for thousands of middle-class families across Kerala. Marketed as a corporate social responsibility (CSR) initiative by large companies, the scheme promised to empower women and support low-income households. Women could buy a brand-new scooter worth Rs 1.2 lakh for just Rs 60,000, while laptops, water tanks, fertilisers, and sewing machines were also offered at steep discounts.
The mastermind behind this elaborate scam was Ananthu Krishnan, a 28-year-old self-proclaimed social activist from Kudayathoor in Idukki district. According to police sources, the so-called initiative was nothing more than a well-organized Ponzi scheme, which funneled funds from new investors to fulfill promises made to earlier ones — until it all came crashing down.
On January 30, Ananthu was arrested, and police froze the bank accounts tied to the operation, halting the flow of funds. A Special Investigation Team (SIT) was formed to uncover the full scope of the fraud. By that time, the scam had already affected between 30,000 and 40,000 people, many of whom had taken out loans to invest in the scheme. Over 3,000 complaints had been filed, with investigations estimating the total amount defrauded at Rs 500 crore. In just 34 FIRs, Rs 37 crore was confirmed as stolen.
Investigators found that Ananthu lived lavishly on the stolen money, renting luxury apartments in Kochi’s Marine Drive, indulging in an extravagant lifestyle, and investing in properties in at least five locations across Idukki and Kottayam. He had built a credible image for himself by posing with celebrities, politicians, and government officials on social media, which added an air of legitimacy to his fraudulent scheme.
Claiming that large corporations were funding the initiative under CSR commitments, Ananthu even approached companies and NGOs for real contributions, although none materialized. The scheme’s success was largely built on a project called Women on Wheels, which initially distributed scooters to early investors, earning their trust and encouraging more people to invest. The scam soon expanded to include discounted household items, further drawing in unsuspecting victims.
As with all Ponzi schemes, the funds eventually dried up, leaving thousands of investors in the lurch. A single complaint to Kerala’s police chief sparked the investigation. “We had no idea the scale of the scam when the first FIRs were registered,” police said.
The fraud turned out to be more than just Ananthu’s doing. It involved a network of NGOs and influential figures, many of whom unknowingly acted as intermediaries, collecting funds from investors and forwarding them to the scam. Allegations also surfaced that the scheme had ties to Kerala’s political circles, with accusations of involvement from politicians across multiple parties.
