Half-price scam: Scheme promotions featured leaders from Modi to Pinarayi
Palakkad: Ananthu Krishnan, the National Coordinator of the National NGO Federation, promoted the half-price scheme offering scooters, laptops and sewing machines by associating it with prominent political leaders. Photos of his meetings with Prime Minister Narendra Modi, Congress leader Rahul Gandhi and Chief Minister Pinarayi Vijayan were widely circulated on social media to lend credibility to the scheme. Images with late former Chief Minister Oommen Chandy were also part of these promotions.
Ananthu Krishnan, while attending distribution events organised by the Confederation’s district committees, invited political figures to enhance the scheme's legitimacy. In Alappuzha, BDJS state president Thushar Vellappally and former minister G Sudhakaran were invited, with Thushar attending the event. Kozhikode events featured Minister Ramachandran Kadannappally and MLA Uma Thomas on promotional posters. In Thiruvananthapuram, Minister V Sivankutty participated in an event.
In 2022, Minister R Bindu inaugurated the Confederation's conference in Kochi, with MPs Hibi Eden and Dean Kuriakose also attending. At a laptop distribution event in Vengara, Malappuram, Muslim League National General Secretary P K Kunhalikutty participated. Most leaders, however, were reportedly unaware of the scheme’s details and attended the events as general public functions.
Local leaders across various districts participated in Confederation events, after which the organisation approached NGOs affiliated with political parties. So far, 175 organisations are preparing to file complaints. The slogan “Overcoming Human Limitations” was used extensively in promotional materials to enhance credibility.
High-profile connections under scanner
Muvattupuzha police informed the court that Ananthu Krishnan's associates included individuals with major political connections, which warrants further investigation. This information was presented in a petition requesting Ananthu's custody from the Muvattupuzha court.
The police also stated that they need to trace the funds collected through the scheme. Investigations will cover properties, vehicles and investments purchased under the names of Ananthu’s relatives and benami (proxy) holders, both within Kerala and elsewhere. Approximately Rs 700 crore was reportedly transferred into multiple bank accounts linked to the accused via the 64 Seed Societies.
According to a police report submitted to the court, Ananthu's company, Professional Service Innovations, based in Iyyattumukku, received Rs 7.332 crore from 1,222 people under the scooter scheme, Rs 15.3 lakh from 51 people for laptops and Rs 11.31 lakh from 127 people for sewing machines, totalling Rs 7.5981 crore.
Around 4,000 complaints, 70 cases registered
Statewide, about 70 cases related to the half-price scam have been registered, following the review of nearly 2,000 complaints. With more complaints continuing to pour in, further investigation is expected to be handed over to the Crime Branch. So far, around 4,000 complaints have been received from various regions, with the highest numbers coming from Ernakulam and Idukki districts.
The scheme was extended to 175 NGOs across different districts, each supported by more than 50 implementing agencies to facilitate operations at the grassroots level. As beneficiaries began filing complaints, these organisations are now preparing to escalate the issue to the Chief Minister.
The first state-level meeting under the Confederation’s leadership, involving these NGOs, took place on May 5, 2022. Distribution of sewing machines, scooters, laptops, water purifiers and agricultural machinery continued until January 31, 2025. However, many who paid for the equipment did not receive the promised items. While some early applicants for scooters received their vehicles, many others were left waiting through subsequent rounds of applications. This resulted in the loss of trust in several NGOs.
Further investigations revealed that the Confederation's explanation for delays often cited obstacles related to CSR funding.