While Kerala is often in the news over smugglers caught carrying gold in their rectums or locals ending up joining ISIS, this time around, the south Indian state has gained infamy for a multi-crore scam that had thousands of people duped.
Orchestrated by 26-year-old Ananthu Krishnan and armed with a vast network of promoters and political backing, one of Kerala’s biggest scams—the Half-Price Scam duped over 40,000 people out of Rs 1,000 crore by falsely promising scooters, laptops, and appliances at half price, claiming CSR funds would cover the rest.
The state Crime Branch, investigating the case, raided the office of the prime suspect, Ananthu Krishnan, in Kadavanthra on Thursday, drawing national attention to the fraud that has shaken Kerala in recent days.
The scam has all the trappings of a masala Bollywood movie; entailed the exploitation of political ties, NGOs, and even a retired High Court judge to build legitimacy. Over 6,000 complaints have surfaced, leading to probes by the State Crime Branch and Enforcement Directorate (ED).
Victims fell for the scheme after seeing endorsements from local leaders. After paying a membership fee and transferring funds, they attended a distribution event featuring panchayat members, only to leave empty-handed with vague promises of delivery. The presence of familiar political faces, administrative authorities, and the pervasive promotion on social media platforms, including WhatsApp and YouTube, lent it an air of credibility, drawing victims in its inescapable grasp.
The scam primarily targeted middle-class women in low-paying private jobs. Government employees were ineligible, leading some unemployed individuals to forge job letters to qualify.
An extensive report published in India Today sheds light on the extent of the scam perpetrated by Krishnan, detailing tragic stories of victims who fell prey to the scam and lost their hard-earned money for the lure of getting things at a 50 per cent discount rate.
How victims fell pray to the Half Price scheme
A 23-year-old student from Kollam needed a scooter due to poor public transportation. Two years ago, she learned about a scheme promising brand-new scooters at half price, allegedly endorsed by local leaders. She discussed it with her family and conducted basic online research, which reinforced its legitimacy.
“The coordinators reached out to us. The offer was appealing—scooters costing over Rs 1 lakh were available at half price. We paid a Rs 320 membership fee, received an account number, and transferred the money,” she recalled.
“They organized an event at a community hall. The presence of panchayat members reassured us. We genuinely believed it was legitimate,” she said. However, she left the event empty-handed.
Instead, organisers distributed laptops and sewing machines and asked attendees to buy stamp paper. A lawyer was present to issue promissory notes, assuring delivery within 100 working days.
To win trust, Krishnan’s team initially distributed household appliances at staged events attended by politicians and police officers. WhatsApp groups and media coverage fueled the illusion of credibility.
The event the victim attended was one of hundreds held across Kerala. In the scam’s early stages, Krishnan’s team distributed household appliances like sewing machines and mixer grinders to gain public trust. These events featured local politicians, police officers, and even ministers.
Extensive media coverage and WhatsApp group promotions further cemented the scheme’s credibility. The scheme, called ‘Women on Wheels,’ included verification desks, displayed scooters, and test rides for applicants. Kavya received a token number 250.
Weeks passed, but no updates followed.
“Then, silence. When we inquired, the promoters lashed out, claiming we wouldn’t receive anything unless we paid the full amount. They insisted the scheme was government-backed and that crores in CSR funds were available,” the victim lamented.
As doubts arose, promoters became aggressive, insisting full payments were necessary and citing government backing. Distribution dates kept being postponed with excuses.
Two distribution dates were announced and postponed—one due to former Prime Minister Manmohan Singh’s death, another citing Republic Day venue unavailability.
Before the scam unravelled, YouTube videos actively promoted it, luring middle-class women into low-paying jobs. Some victims took loans or sold valuables to participate. Kerala Police estimate at least 40,000 were scammed.
Krishnan built his credibility over the years, engaging in social welfare programs and business ventures. He allegedly ran a chit-fund scam as well, though investigations are ongoing. Now, as the scheme is exposed, thousands of victims await justice.
Now that the scam has been exposed, the victim has filed a complaint and is awaiting a refund.
Victims made desperate sacrifices to participate. Rajila, a fabric shop salesgirl, sold her cows to join the scheme. Another took a loan using her children’s gold ornaments as collateral.
Krishnan’s history as a fraudster
Krishnan’s rise as a fraudster was a gradual process that spanned several years. Starting from a remote village, he gradually built a credible image through social welfare initiatives involving panchayats and the Kerala Women’s Commission.
Although reports are suggesting his involvement with the Kerala Women’s Commission in 2012, which he has officially denied, it is undeniable that he was actively involved in community programs during that time.
Additionally, Krishnan also ran a fungiculture business and organized promotional events across Kerala. However, some reports allege his involvement in a chit-fund scam, which is still under investigation by the police.
Now that the scam has been fully exposed, authorities are diligently investigating the extent of the fraud, while thousands of victims eagerly await justice.
