A fraudster from his school days

Anandhu Krishnan’s fraudulent journey began during his teenage years, while he was still an SSLC student under the age of 18.

At that time, he focused on mushroom cultivation, conducting classes on the subject to gain visibility. Through these activities, he connected with a former Women’s Commission member, initially as her assistant in mushroom farming.

This eventually led to him becoming a trusted member of her personal staff, giving him access to a wider social network and bringing him in touch political representatives.

It was during this period that Anandhu was implicated in a case involving the alleged fraudulent sale of a tea plantation, which was linked to a BJP woman leader.

“During interrogation following his arrest in the half-price scam, Anandhu disclosed that before launching the scam, he had attempted another fraud under a scheme by the Ministry of Micro, Small, and Medium Enterprises (MSME). The scheme offered subsidies for sewing units through NGOs. However, he abandoned this plan when the central government discontinued the scheme. He later devised the half-price scam under the pretext of CSR funds being made available,” said a police officer from the probe team who wished to remain anonymous.

The officer added that although Anandhu claimed to have approached several companies for CSR fund approvals, he failed to provide any proof that showed such attempts were made.

What the preliminary investigation suggests

The preliminary investigation in the scam suggests that no CSR funds were available and the scheme purely ran using the money that was collected.

“The accused collected money from the customers and used it to settle payments to dealers and dealerships for products. For instance, funds from two customers were often used to fulfill a single product purchase, allowing him to offer goods at half price to early members,” said a police source, speaking on condition of anonymity.

The probe team is now looking into the involvement of high-profile names, especially political party leaders in the scam, considering the enormity of it.

In the initial stages, the probe team believed Anandhu had acted alone, and succeeded in boosting the popularity of his ‘scheme’ by using his photos with hotshots.

But the revelations made by Anandhu during investigation that he had a close association with the Sri Sathya Sai Orphanage Trust Executive Director KN Anandakumar has convinced the probe team that bigger names could have been involved.

Adding to this, Anandhu himself has alleged that prominent individuals and political figures were involved in the operation. He claimed to have given money to members of various political parties as he was being escorted to his offices and flats for evidence collection. However, when pressed for specific names, Anandhu refrained from divulging details, offering only a half smile in response.

The Bee that buzzed for Anandhu

As per police sources, Anandhu established numerous fraudulent companies and associations to pull off his scams.

The key entity was Social Bee Ventures, a Limited Liability Partnership (LLP) based in Girinagar, Kochi. This company was actively operational during the height of the half-price scam but shut operations after Anandhu’s arrest.

The official records reveals that the company had an operating capital of just Rs 1 lakh, but transacted crores of rupees.

What the Half-price scam reveals about Keralites

Financial experts agree that scams like the half-price scheme are fueled by a widespread tendency among Keralites to seek discounts or even freebies.

“The total financial loss suffered by the public and the full scope of the scam are still being uncovered. What we know now is just the tip of the iceberg,” said Nikhil Gopalakrishnan, CEO of Pentad Securities, a Kochi-based stock brokerage firm.

According to Gopalakrishnan, scams operating under the pretence of being driven by Corporate Social Responsibility (CSR) funds have been around for years. Many individuals are drawn to these schemes, lured by the belief that large sums of money can be obtained from the CSR funds of listed companies.

“Most people, especially the general public, lack awareness about CSR funds, their legalities, and the formal procedures for allocation,” he added.

With countless stung by this latest scam, will Keralites learn to be on their guard? Well, we all know the answer to that, now don’t we?