Kochi: Ananthu Krishnan (26), the key accused in the CSR fund scam, told police that politicians received a share of the money swindled from the people through the fraudulent scheme that offered two-wheelers, laptops, and home appliances at half price.

During interrogation on Friday, the accused claimed that Congress and CPM leaders in Idukki collected money from him as election funds, reported Manorama News. The probe team found that a Congress leader received Rs 40 lakh, while a CPM leader accepted a commission of Rs 25 lakh from the accused. Officials have recovered bank account details confirming these transactions.

According to the investigation team, Ananthu Krishnan transferred the funds to the bank accounts of the leaders’ staff. The team also confirmed that some politicians collected funds from the accused through cooperative banks. Manorama News reported that police have obtained WhatsApp chats between Ananthu Krishnan and those who received money from him.

Police confirmed that Sai Trust chairman KN Anand Kumar received Rs 2 crore, while Congress leader Lali Vincent got Rs 46 lakh from the accused.

Ananthu Krishnan told the probe team that he got acquainted with Anand Kumar to leverage his contacts for fraudulent activities. He had planned to collect money from 200 companies to operate the CSR scam. However, police confirmed that no company had paid money to the accused.

Ernakulam Rural SP Vaibhav Saxena stated that all complaints received till date only named Ananthu Krishnan as the accused.

Police are also examining his bank accounts to track how he utilised the money obtained through the fraud. The total fraud is now expected to be around Rs 600-700 crore, police said on Thursday. Three cars owned by Krishnan have been seized. Meanwhile, more complaints are being filed against him, including in his hometown of Thodupuzha.

The multi-crore CSR fund scam made headlines after Muvattupuzha police arrested Ananthu Krishnan a few days ago. He allegedly swindled money from poor people by offering two-wheelers, laptops, and home appliances at half price. With the support of politicians, including local government representatives, Ananthu and his agents collected money and issued receipts. However, neither the products were delivered nor money was refunded.

Police have registered hundreds of complaints regarding the scam across various police stations in the state, with over 200 complaints filed in Kannur district alone.

The fraud

Ananthu Krishnan had been running the fraud since 2022 by registering societies, with women being the primary victims, police said. He was arrested last week for operating the scam through the Muvattupuzha Socio-Economic Development Society, where he lured members into depositing money in a consultancy he set up, promising them two-wheelers at half price. He had created multiple consultancies under his name and conducted transactions through them.

According to police, he convinced people that he was the national coordinator of the National NGO Federation and that he had been entrusted with managing CSR funds of various companies in India. Police said that the accused set up such societies in every block of the state and collected money through 62 "seed societies". Many companies were not even aware that the accused was carrying out the fraud by promising CSR funds from them. 

Besides several cases of cheating and criminal breach of trust against him in Ernakulam and Idukki districts, a case was registered against Krishnan and six others, including Congress leader Lali Vincent, in Kannur district for the same offences. On Friday, Perinthalmanna police booked MLA Najeeb Kanthapuram and his secretary over the same scam.