Muvattupuzha: Ananthu Krishnan, who was in remand in connection with a fraud case involving promises of delivering two-wheelers at half price to women, has been placed in police custody for five days by the court. The investigation is being led by Basil Thomas at the Muvattupuzha police station.

Authorities will also examine Ananthu's dealings with his lawyer Lali Vincent against whom a case has been registered by the Kannur police. With cases filed against Ananthu Krishnan in various parts of Kerala, officers from multiple police stations are arriving at the Muvattupuzha station to facilitate his arrest.

As he was being escorted from the sub-jail, Ananthu Krishnan said, "The truth will come out. The police should conduct a thorough investigation." However, he did not respond to questions regarding the involvement of any high-profile individuals in the case.
In the coming days, the police will take Ananthu Krishnan to his residence at Kodayathur in Thodupuzha as well as to the offices of the Sardar Patel Institute of Advanced Research Development Society. Inspections will also be conducted at the offices, flats and
intermediary institutions under his leadership, such as 64 Seed Societies, located in Ernakulam and other areas, to collect evidence.

Everything from fertiliser to two-wheelers included in the scheme

The half-price scheme, part of the multi-crore fraud orchestrated by Ananthu Krishnan, included products ranging from fertilisers to two-wheelers. The pilot phase of the scheme began in 2019 in Idukki, where agricultural equipment and fertilisers were provided to cardamom farmers at half price. At that time, it was claimed that the remaining funds would be covered by corporate companies' Corporate Social Responsibility (CSR) contributions. Issues have persisted since then, with cases emerging about loans taken and defaulted on, as well as financial troubles related to tea trading during the same period.

From Idukki to across Kerala

Ananthu’s operations began in Idukki’s Kodayathoor, where he established an NGO named ‘Sardar Patel Institute of Advanced Research Development Society’. Initially confined to Idukki, by 2022-23, the activities expanded to Thodupuzha and Muvattupuzha under the name ‘Seed’, forming local societies. The network soon extended to Kottayam and Parassala, eventually covering the entire state by 2024. Ananthu also prominently used his title as the National Coordinator of the National NGO Federation to lend credibility to his operations.

Since 2022, the scheme involved collecting money with the promise of providing sewing machines, home appliances, water tanks, laptops, scooters and water purifiers at half price. Laptops priced at Rs 40,000, Rs 51,000, and Rs 60,000 were offered at half these amounts, and some were indeed delivered to early participants. The scheme gained notable traction when scooters, originally priced at Rs 1,20,000, were offered for Rs 60,000. In 2024, the scheme even included Onam kits worth Rs 3,500, marketed at Rs 1,750. When people who paid did not receive their items, it was reported that some Seed promoters personally purchased and distributed the kits to maintain trust.

Misrepresented as a Central Government scheme

The half-price scheme was initially promoted as a programme aimed at the empowerment of ordinary women and families. It was falsely presented as a Central Government initiative, with the National NGO Federation name being used to mislead the public. Many people, unaware of what CSR funding actually entailed, believed they could acquire goods at half price, thinking the Central Government would cover the rest of the cost. As the organisers were often familiar faces, many individuals mortgaged gold, took loans or joined chit funds to gather the required money. The scheme gained further credibility through collaborations with various cooperative societies and organisations.

Women on Wheels

There are 64 Seed societies across the state. The distribution of vehicles and goods to a few people in the presence of public representatives, with photos and videos widely circulated, remarkably enhanced the scheme’s credibility. It was widely believed that anyone paying half the cost would receive a scooter registered in a woman’s name.

The police discovered that a large portion of the funds was funnelled into organisations like Social Bee Ventures in Thodupuzha and Iyyattumukku, Professional Service Innovation in Kalamassery, and Grassroot Innovation. The police have frozen Rs 3 crore in these accounts. These organisations also collected crores in registration and membership fees.

Among the participants, some ended up paying between RS 3,750 and Rs 7,000 in addition to the half-price cost of vehicles. Reports indicate that companies supplying vehicles, sewing machines and laptops as part of the scheme are yet to be paid. Many companies had provided these goods directly.