Scooters, laptops, and home appliances at half price—that was the enticing offer from the National NGO Confederation, founded by 26-year-old Ananthu Krishna from Kerala. Riding on this wave, Ananthu Krishnan was arrested by the police for duping people across Kerala out of several crores by promising scooters, laptops, sewing machines, and home appliances at half price.

Thousands signed up for the scheme, making payments to receive equipment at half price. However, with Ananthu’s arrest last week, a multi-crore scam has been uncovered. The confederation was established in 2022 by bringing together around 170 local NGOs.

The idea was that through these NGOs, the confederation would gather corporate social responsibility (CSR) funds from companies to cover half the cost of products offered to people who signed up for the scheme. According to police, Ananthu Krishna defrauded people of over Rs 20 crore.

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What Was The Scheme?

The confederation offered attractive deals, such as scooters worth Rs 1.20 lakh for just Rs 60,000 and laptops worth Rs 60,000 for Rs 30,000. Similar offers were available for home appliances. According to various reports, Ananthu and his team convinced people that the remaining cost, as per the scheme, would be covered through CSR funds sourced by the NGO confederation from corporate donations. Applicants were asked to pay half the price of the product along with a registration fee of Rs 500.

Initially, some of the applicants did receive the two-wheelers and laptops at the promised prices, which made the scheme seem legitimate.

How did The Case Unfold?

Months after making the payment, when the scooters and other items had not been delivered, the organizers came up with a new excuse and asked the protestors for more money. They promised that if they paid again, the requested goods would be delivered within three months. When the goods still did not arrive, many people began questioning them. To calm the situation, they called meetings with those who had paid, assuring them that the goods would be delivered within the next 100 days. They even signed a contract on a seal to reassure the customers. However, they were once again cheated by charging Rs. 200 for the seal fee and Rs. 500 for notarization.

How Kudumbashree’s Name Came Up?

Voluntary organizations reached out to the state’s largest organization, Kudumbashree, in search of beneficiaries for the distribution of two-wheelers by the National NGO Confederation. The goal was to involve more women in the project through CDS offices. However, three months ago, the State Mission Office had issued a warning to all offices, from the district to the lower levels, through an official letter.

The directive clearly stated that employees should avoid associations with private voluntary organizations, with a warning of action if such connections were discovered. Despite this, some voluntary organizations found beneficiaries through grassroots-level employees. This came to light when the complainants informed the police. Many individuals, trusting Kudumbashree and its grassroots members, had applied for the two-wheelers, unaware that the NGO was involved.

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.