Imagine getting a brand-new scooter for just 60,000 or a branded laptop for 30,000. No one would want to miss such an opportunity. This very allure was used in the 'Half-price Scam' in Kerala, affecting nearly 50,000 people. By promising goods at half the price, a staggering amount of 10 billion was swindled from ordinary people. The mastermind, Ananthu Krishnan, is now in police custody, with further investigations unfolding the layers of this scheme.
What is the Half Price Scam?
Pretending to empower women, this scam operated under the guise of NGOs since 2022 across several Kerala districts. It targeted middle and lower-income groups, offering domestic items like scooters, laptops, sewing machines, and more at half prices, alleging that major corporations and the central government would cover the remaining cost through CSR funds. Ananthu Krishnan established an organization called the National NGO Confederation (NNC) in 2022, aligning it with around 2,000 NGOs.
Source: aajtak
Drawn by the promise of cheap goods, people started investing. Some even borrowed money to pay their share, hoping to snag a bargain on items like scooters and laptops. These funds were channeled through various consulting agencies working under the NNC, bypassing direct monetary interactions with the NNC to build credibility among investors. However, the entire sum reached directly to Ananthu's organization.
How the Scam Was Exposed
In the beginning, Ananthu did deliver some goods at half price using investors' money, even organizing events with featured politicians to lend credibility to the scheme. This move aimed to enhance trust and encourage more people to invest. Attendees at these gatherings, unaware of the scam, thought they were merely participating in NGO events distributing cheap goods. To maintain investor trust, Ananthu was photographed with celebrities and police officers. Local leaders and panchayat members were also roped into endorsing the plan.
Everything ran smoothly for a while. However, when people stopped receiving goods at the promised prices, complaints started pouring into the police. Initially, investors were placated temporarily, but as numbers grew, the scam unravel became apparent based on the mounting grievances. Reports of fraud surfaced back in November when the first signs were noticed in WhatsApp groups expressing concerns over undelivered items.
The Mastermind Caught
The police revealed it as a classic Ponzi scheme, initially benefiting people before the money vanished. Ananthu was arrested on January 31st, and bank accounts associated with the scheme were frozen, securing the investor money. An SIT has been set up to dissect the layers of this scam. By the time the scam was exposed, around 50,000 people had fallen prey, and approximately 6,000 complaints were filed with the police.
Investigations further revealed Ananthu's extravagant lifestyle funded by investors' money. He rented lavish apartments in Kochi's Marine Drive and invested in properties across Idukki and Kottayam at five different locations. To make his operations seem legitimate, Ananthu involved politicians, NGOs, and even a retired High Court judge. Investigations against some of these associates have commenced. Alongside Kerala's Crime Branch, the Enforcement Directorate (ED) is also delving into this elaborate scam. The duped residents are now fiercely enraged.
A Student's Tale of Deceit
As the scam became public, India Today interviewed several victims, including Kavya Vinod, a 23-year-old student from a small village in Kollam district, a hotspot for scam victims. Needing a scooter due to inadequate public transport, Kavya learned about a deal offering brand-new scooters at half the price, endorsed by local leaders, just two years before. It felt like the perfect opportunity.
Consulting family and friends, and after conducting some basic research online mostly on YouTube where the scheme appeared promising, Kavya decided to proceed. A coordinator reached out, explaining the offer: a scooter typically priced over 100,000 was available at half rate. Paying a 320-membership fee, she then transferred the specified amount to the account number she was given.
An Oath on Stamp Paper
Kavya explains that the initial process was swift. However, for two months, there was no communication. Anxiety brewed in a WhatsApp group for 'beneficiaries.' Frequent inquiries led to misleading assurance from promoters about a forthcoming scooter distribution event. A date was set, announced to be held in a community hall. Seeing local leaders and community members present reinforced Kavya's faith in the scheme. It seemed legitimate, though she left the event empty-handed.
During this event, the organizers distributed laptops and sewing machines, asking them to purchase stamp papers and sign affidavits, with a lawyer present. Assurance was given that vehicles would be distributed within 100 days. However, several times following distribution dates were set only to be postponed again.
Months prior to the public exposure of the scam, Kavya started hearing reports about fraud charges against Ananthu Krishnan and his promoters. However, the promoters dismissed these as part of a conspiracy. Online searches revealed many YouTube videos still luring people into the half-price scheme. Although Kavya still awaits her scooter, the unfolding truth has been tough to swallow.
