Kerala’s Crime Branch police have arrested KN Anand Kumar, the executive director and one of the founders of the Sri Sathya Sai Orphanage Trust, in connection with the ‘half-priced’ scam. Anand Kumar is accused of defrauding thousands of people by falsely promising to provide essential goods at half price. Police estimate that the scam amounts to more than Rs 1000 crore.
The magistrate remanded him till March 26, through video conference as he was admitted in a private hospital in Thiruvananthapuram due to cardiac issues, after being taken into custody. He currently continues to be hospitalised.
Anand Kumar’s arrest came after the Principal Sessions Court in Thiruvananthapuram rejected his anticipatory bail plea on Tuesday, March 11.
The fraudulent scheme, which was launched more than a year ago, lured customers by offering products such as two-wheelers, laptops, sewing machines, and water tanks at half price. Customers were told that the remaining cost would be covered by Corporate Social Responsibility (CSR) funds.
The alleged mastermind behind the scheme was 28-year-old Ananthu Krishnan from Idukki. It was with the support of the National NGO Confederation (NNC), a coalition of various NGOs in Kerala, he committed the fraud, say the police.
Anand Kumar, the former chairman of NNC, is alleged to have introduced Krishnan to the organisation.
On January 31, Ananthu Krishnan was arrested for failing to deliver the promised products despite collecting payments. Following his arrest, numerous complaints were registered across the state. Anand Kumar was also named in some of the cases.
Meanwhile, Anand Kumar denied the allegations against him and told the media that the NNC had no involvement in the schemes. He said that it was Ananthu Krishnan’s company that received all the money collected through this scheme.
