Scooters, laptops and home appliances at half price – this was the offer from the National NGO Confederation, floated by 26-year-old Ananthu Krishna from Kerala.
Thousands signed up for the scheme and made payments, but with last week’s arrest of Krishna, the “national coordinator” of the NGO confederation, it has unravelled as a multi-crore fraud, police sources said.
According to sources, the confederation was floated in 2022 by bring around 170 local NGOs together. The idea was that through these NGOs, the confederation would collect corporate social responsibility (CSR) funds from companies to cover half the cost of products that would be offered to those who avail the scheme.
Story continues below this ad
Krishna was arrested by Ernakulam Rural Police following complaints from multiple people who signed up for the scheme. After his arrest, police stations across Kerala, particularly in the north of the state, have been flooded with similar complaints, many of them from women.
Prominent figures, including a retired High Court judge and the executive director of a prominent NGO, who had been part of the confederation, were among those named as accused in cases filed in connection with the scam.
On Sunday, while being taken for evidence collection, Krishna told reporters that he had “given money to political leaders”.
According to police sources, Krishna had taken money from around 30,000 applicants and put it into around two dozen bank accounts that he controlled.
Story continues below this ad
“Complaints run into thousands, both from individuals and local NGOs or other entities that worked as facilitators for the fraud. After varifying the details, we have so far registered around 100 cases, in which there have been a reported a loss of Rs 60 crore. Prima facie, the money involved in the fraud is estimated to be Rs 400-500 crore. The volume of money will only go up after all complaints are verified,” an officer of Ernakulam Rural Police said.
The scheme
The confederation offered scooters worth Rs 1.20 lakh at Rs 60,000, and laptops worth Rs 60,000 at Rs 30,000. There were also schemes of a similar vein for home appliances. The rest of the MRP was promised to be met from the CSR fund, which the NGO confederation would bring in from corporates. An applicant had to pay half the price of the products as well as a registration fee of Rs 500.
Some of the early applicants were actually given two-wheelers and laptops at the promised prices. “This was a ploy to win over the confidence of the public and attract more applicants. There was no CSR fund from anywhere. The full market price of the offered products, which were delivered initially, were entirely met from the initial amounts pooled from various applicants. Besides, he (Krishna) also pocketed commission for bulk purchase of scooters and gadgets,” the officer said.
The distribution of the gadgets were mega events attended by MLAs, other politicians, and senior police officers. Krishna brandished photos in which he was flanked by celebrities and prominent figures. When complaints started to trickle in after he failed to deliver the promised products, Krishna settled the issue by returning the money of several applicants. However, complaints continued to mount, leading to police action.
Story continues below this ad
Modus operandi
The modus operandi of the NGO confederation was as follows: Krishna floated the confederation, in which around 170 NGOs from across Kerala were enrolled, in 2022. He had a few NGOs in his own name, registered in different parts of the state. The confederation deputed entities at block level to canvass people for the scheme and bring in local politicians and social workers.
IUML legislator Najeeb Kanthapuram had applied for laptops for distribution among the public through his NGO Mudra Charitable Foundation. However, after the promised laptops failed to reach the applicants, a few of them filed complaints against the MLA, who is also now facing a police case.
Talking to reporters, Kanthapuram said, “The NGO confederation had collected Rs 1.80 crore through my foundation for the laptops. I am a victim of the racket. I trusted the confederation after seeing that state Education Minister V Sivankutty inaugurated a function of the confederation. If the amount cannot be retrieved from the confederation, I will find ways to pay back the money collected from the applicants.”
Man behind the scheme
Krishna, a graduate, is a native of Kudayathoor in Idukki district. He has launched multiple NGOs based in his village.
Story continues below this ad
Kudayathoor panchayat member C S Sreejith said, “Ananthu (Krishna) has the gift of the gab… He uses all of his relationships to his advantage. He has launched two NGOs on paper – one named after Sardar Patel and another after Abdul Kalam. Both had their offices listed at Kudayathoor.”
Krishna’s father is a carpenter and mother a worker at the state civil supplies corporation. “After he floated the NGO, his growth was visible. He bought land and moved around in costly cars. He distributed scooters and laptops in our village also. At the same time, we have complainants who were cheated,” said Sreejith.
