Kerala: ED searches in fake CSR fund 'scam'

The Enforcement Directorate on Tuesday conducted searches at multiple locations in Kerala in connection with the alleged fake CSR fund scam, in which fraudsters duped many people of their funds by falsely promising to offer laptops, two-wheelers and home appliances at half the price. Official sources said the entities, trusts and individuals who have "received" money from Anandu Krishnan, the prime suspect in the case, are being searched to trace the "proceeds of crime" collected from poor people.

Role of some politicians, electronic dealers, automotive dealers and cooperative banks and a fertiliser manufacturing company are under the scrutiny of the federal probe agency, the sources said.

The agency suspects that at least Rs 450 crore was collected from the depositors as part of the alleged fraud ring.


The searches are aimed to ascertain the total number of victims, the amount collected and where these monies have been diverted and parked, the sources said.

The money laundering case stems from an FIR of the Kerala Police Crime Branch.

According to complaints received by the police, the fraudsters made false offers, claiming the discount was part of the Corporate Social Responsibility (CSR) activities of various NGOs and charitable organisations.

According to the police, the total amount defrauded in these cases is around Rs 37 crore.

The police had arrested Krishnan, a resident of Thodupuzha in Idukki district, for allegedly defrauding people of several crores by promising scooters, sewing machines, home appliances, and laptops at half price.

The state police is conducting a "comprehensive" investigation into the alleged scam, which has led to complaints from across the state.