Chief Minister Pinarayi Vijayan told the Kerala Assembly on March 17, Monday that only a detailed probe would determine whether political leaders were involved in the massive Kerala half price scam.
The scam involved a fraudulent CSR initiative where victims were promised high-value consumer products such as scooters, laptops, and sewing machines at half the market price. However, after an initial round of deliveries, the scheme collapsed, leaving thousands defrauded.
CM Vijayan said that the known extent of the scam is Rs 231 crore, with 1,343 cases registered. Of these, 669 are being investigated by the Crime Branch.
"Currently, 48,384 people have fallen victim to this scam. Initially, they received products at half price, but eventually, nothing was delivered. The investigation is ongoing," CM Vijayan said.
On potential political involvement, the Chief Minister said, "That can be known only as the probe progresses."
So far, two arrests have been made, including 28-year-old Ananthu Krishnan, the alleged mastermind behind the scam, and KN Anand Kumar, Chairman of the NGO Confederation and a well-known social activist. Their bank accounts have been frozen as part of the investigation.
While CM Vijayan stated the scam’s scale at Rs 231 crore, unofficial estimates suggest it could exceed Rs 1,000 crore.
The fraudulent scheme attracted thousands of unsuspecting investors, who believed they were making profitable purchases through corporate sponsorship. As the scam unraveled, several victims came forward, revealing they had lost their savings.
The Crime Branch’s investigation has uncovered the vast extent of the fraud, with more than 1,000 cases registered across Kerala’s 14 districts.
Last month, the Enforcement Directorate’s Kochi unit conducted raids at 12 locations across Kerala to trace the money trail and investigate possible money laundering links.
Read : How a con artist, a biz man and a ‘half-price’ scheme swindled thousands in Kerala