A 26-year-old man has been arrested in Kerala for cheating people of over Rs. 20 crore by falsely claiming he could provide scooters, sewing machines, and home appliances at half price using Corporate Social Responsibility ( CSR ) funds.
Krishnan tricked people by saying he had access to CSR funds from big companies. He told them these funds would subsidize the cost of two-wheelers and other essential items. Many believed him and deposited money, hoping to get products at a discounted price.
Become PF & ESIC Pro: Basic to Advance Course – Enroll Today
The police later discovered no company had given him any CSR funds. The entire scheme was a fraud. The man set up Muvattupuzha Socio-Economic Development Society and several consultancies in his own name.
He asked people to pay in advance for products at half price. He expanded the scam by setting up 62 ‘Seed Societies’ across Kerala, convincing members especially women to deposit money. Some people initially received laptops, sewing machines, and other items, making the scheme look real.
The scam was uncovered when people failed to receive their promised scooters and home appliances. Kerala man stole Rs. 9 crore in Muvattupuzha district. Police estimate the fraud to be over Rs. 20 crore across Muvattupuzha and Idukki, and they believe the total amount may be even higher. More than 400 complaints have been filed.
Become PF & ESIC Pro: Basic to Advance Course – Enroll Today
He has been arrested in Kochi, and multiple cases of cheating and criminal breach of trust have been filed against him.
This is a wake-up call for the public to beware of fraudsters who misuse CSR funds to attract people with fake discounts. Genuine CSR programs are handled directly by companies and do not require people to deposit money.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
