KOCHI: Scooters, laptops, and home appliances at half the price – the offer seemed like a golden opportunity for thousands of middle-class families across Kerala. The scheme, marketed as a CSR initiative by large companies, claimed to empower women and support low-income households. Women could own a brand-new scooter priced at Rs 1.2 lakh for just Rs 60,000. Laptops, water tanks, fertilisers, and sewing machines were also promised at massive discounts. This generous offer was allegedly devised and executed by Ananthu Krishnan, 28, of Kudayathoor in Idukki district, a self-styled social activist with an eye for deception.
The scheme, police sources said, was nothing more than a sophisticated Ponzi operation, rechannelling funds from new investors to fulfil promises to earlier ones – until it all came crashing down.
On Jan 30, Ananthu was arrested and police froze the bank accounts linked to the operation, cutting off the flow of funds. An SIT was formed to uncover the full extent of the fraud. By then, the scam had already ensnared between 30,000 and 40,000 people, many of whom had taken loans to invest. Over 3,000 people have filed complaints, with investigations estimating the total fraud amount at Rs 500 crore. In just 34 FIRs, Rs 37 crore was confirmed as swindled.
As per investigators, Ananthu lived extravagantly on the bilked money. He rented luxury apartments in Kochi’s Marine Drive, spent heavily on a posh lifestyle, and invested in properties in at least five locations across Idukki and Kottayam. Ananthu had carefully built an image of credibility. Fluent in English and active on social media, he posed for photos with celebrities, politicians, and govt officials, adding an air of legitimacy to his scheme.
He said large corporations were funding the initiative under CSR obligations, and to make it appear authentic, he even approached companies & NGOs for real CSR contributions, though none materialised. A project named ‘Women on Wheels’ was the gateway to the scam’s success. Initial investors received scooters, fuelling trust & encouraging more bargain-hunters to invest. Soon, the scheme expanded, offering household items at steep discounts.
But as with any Ponzi scheme, the money eventually ran dry and left thousands in the lurch. A single complaint to Kerala’s police chief triggered the first probe. “We didn’t know the magnitude of the scam when the first FIRs were registered,” police said. Ananthu’s scam was more than just a solo act. It involved a web of NGOs and influential figures. Many organisations unknowingly acted as intermediaries, collecting money from investors and forwarding it to the scam. The scam had also spilled into Kerala’s political circles, with accusations surfacing against politicians from multiple parties.