KOCHI/KANNUR: The Police team probing the fake corporate social responsibility (CSR) fund scam has widened the net amid complaints that the victims did not receive two-wheelers at half the market price despite making payments. The police estimate that the fraud committed by Anandhu Krishnan, a 26-year-old Thodupuzha resident who was arrested for promising scooters and home appliances at half their price under CSR funds, could surpass Rs 1,000 crore.
While around 500 complaints were received from the Muvattupuzha region alone as of Wednesday, the Kannur Town Police have registered a case against Congress leader Laly Vincent in connection with the scheme. The scam was run under the guise of an NGO ‘Muvattupuzha Socio-Economic Development Society’. Laly has been named as the seventh accused in the case.
A total of 10 cases have been registered with the Ernakulam Rural police against the suspect, as of Wednesday. The authorities revealed that Anandhu had a particular interest in maintaining close relationships with leaders of all political parties and often showcased these connections publicly to gain credibility.
Ernakulam Rural Police Chief Vaibhav Saxena said, “The suspect’s bank accounts have been frozen, and at the time of freezing, they had approximately Rs 4 to 5 crore.”
In Kannur, the case was filed based on a complaint by the society’s Kannur block secretary P Mohanan, who alleged that Laly frequently visited Kannur with its MD Anandhu for various “dealings”. He also claimed that Laly attended the society’s meetings alongside Anandhu.
Meanwhile, Kannur City Police Commissioner P Nithin Raj said that around 500 complaints have been lodged within the city limits alone. “So far, 494 cases have been registered in Kannur town, with an estimated `8 crore defrauded by the society. We anticipate more complaints,” he said.
Nithin Raj said that while the Society’s promoters are listed as accused, many local-level promoters are also victims. “Our investigation has revealed that Laly was the society’s legal adviser and had previously represented it in legal matters,” the officer said.
On Wednesday, hundreds of women gathered at the Kannur commissioner’s office, alleging that the local police had refused to register their complaints. “Most of us learnt about the society through the panchayat’s WhatsApp group. Several promoters had political affiliations, and the society’s inauguration in Kannur was even attended by MLA K V Sumesh,” one of the victims said.
The society, established in April 2023 in Kannur, was operated by a 13-member promoter group. It falsely claimed to be part of a Central initiative, supposedly backed by CSR funds from major corporations. The victims were charged a registration fee of up to `6,000, with promises of laptops and home appliances at half the market price, with the balance allegedly covered by CSR contributions. The scheme later expanded to include two-wheelers and additional household items. However, when the promised products failed to materialise, the victims began filing complaints.
I merely gave legal advice: Laly Vincent
“I don’t understand why I am being dragged into this case. Is giving legal advice a reason to be implicated?” Congress leader Laly Vincent said. She said she had known Anandhu for the past three to four years and appeared in some cases for him. “I was never involved in any of his projects. From what I observed, many individuals, including dealers, representatives of motor vehicle companies, and political party members, frequently visited Anandhu at his flat. Even now, I don’t believe this to be an outright fraud. It might be a (result of) mismanagement,” she said.
Those who booked bikes through SIGN to be refunded
All those who have booked two-wheelers through the Society for Integrated Growth of the Nation (SIGN) will get a refund, BJP state vice-president A N Radhakrishnan has said. “People who want two-wheelers can wait and others will get their payment back ,” he said.