On Sunday, the Kerala police initiated a cheating case against retired Kerala High Court Judge, Justice CN Ramachandran Nair, for allegedly defrauding Rs 34 lakh in the infamous Corporate Social Responsibility (CSR) fund scam. Justice (retired) Ramachandran Nair, who served as a trustee for the National NGO Confederation, is identified as the third accused in this case. The first and second accused are KN Anand Kumar, chairman of Sai Gramam Global Trust, and Anandhu Krishnan, respectively. The case, registered at the Perinthalmanna police station, stems from a complaint filed by the president of Angadippuram Kisan Service Society (KSS), the implementing agency of the initiative. The complaint alleges that the three individuals collected Rs 34 lakh from KSS in installments.

The police have filed charges against the accused under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS). In response to the developments, Justice CN Ramachandran Nair stated that the police acted without conducting a preliminary investigation, asserting that the case against him is based on false claims.

The CSR scam, often referred to as the half-price scam, involves the alleged extortion of money from numerous individuals under the pretense of offering scooters, laptops, and other household goods at half price, falsely claiming they would utilize CSR funds. Police investigations reveal that Anandhu Krishnan, the principal accused, exploited over 200 NGOs to carry out these fraudulent half-price schemes for a variety of products, including scooters, laptops, and home appliances. Aged 26 and hailing from Idukki, Krishnan allegedly deceived individuals and charitable organizations statewide by promising to deliver items like two-wheelers and water purifiers at reduced prices, claiming funding through CSR schemes from large private corporations. Authorities have discovered that he operated around 19 bank accounts, executing transactions amounting to approximately Rs 450 crore in recent months.

“Krishnan’s modus operandi involved forming partnerships with various charitable trusts as a coordinator for the National NGO Federation, assuring them he could supply products at discounted rates. The trusts assisted him in identifying beneficiaries, pooling funds, and promoting the initiative. He ultimately defrauded both individuals and these trusts by failing to meet his promises,” noted a police officer.

As investigations into the CSR fund scam continue, the volume of complaints has surged across the state. The Ernakulam Rural Police have received approximately 200 complaints related to the fraud, while sources indicate over 750 complaints have been lodged at police stations in Kottayam alone. Additional complaints have been recorded in Kannur, Malappuram, Idukki, and Kasaragod districts. Notably, Kannur City Police Commissioner P Nithin Raj reported around 500 complaints filed within the city limits. Recently, the Kannur Town Police also registered a case against Congress leader Laly Vincent concerning the scheme.

With more than 7,000 individuals having enrolled in the scheme led by Anandhu Krishnan, who has been arrested in connection with the fraudulent activities, the number of complaints is anticipated to rise further. Police sources indicate that Krishnan established shell companies and partnerships for financial fraud, with the most significant being a limited liability partnership called Social Bee, based in Girinagar, Kochi. The company reported a working capital of Rs 1 lakh in its documents; however, authorities suspect that Krishnan accumulated substantial wealth through this entity. The company has ceased operations since Krishnan’s arrest.

Meanwhile, the investigation team probing the CSR fund scam took Anandhu Krishnan to his offices in Erattupetta, Idukki, and Kolapra on Saturday for evidence collection. Earlier, a court in Muvattupuzha had remanded Krishnan in police custody for five days.

In a related incident, the Perinthalmanna police opened a case against IUML MLA Najeeb Kanthapuram, following a complaint from a 24-year-old woman from Pulamanthole in Malappuram district, with the MLA’s secretary also facing charges. Moreover, the Perinthalmanna police filed two additional cases linked to the fraud, including one initiated by Kanthapuram himself. In his complaint, the MLA asserted that Rs 1.88 crore was embezzled from a charitable organization in his constituency under the guise of offering laptops, two-wheelers, and sewing machines, implicating officials from the National NGO Confederation, including the key arrested suspect Anandhu Krishnan, in orchestrating the scam.