In a bid to intensify legal action against those implicated in a large-scale Corporate Social Responsibility (CSR) funds scam, seven NGOs have petitioned the Kerala High Court, urging authorities to invoke the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act). Their plea argues that applying this law would enable authorities to freeze misappropriated funds and prevent further financial losses.
The case revolves around allegations that Ananthu Krishnan orchestrated a fraudulent scheme, deceiving individuals and charitable organizations by promising heavily discounted goods—including two-wheelers, laptops, and household appliances—allegedly sourced from CSR contributions of private firms. Claiming to represent the “National NGO Confederation,” Krishnan reportedly convinced several NGOs to help him identify beneficiaries and pool funds, only for them to realize they had been duped.
With police stations across Kerala swamped with complaints from those defrauded, the NGOs now insist that beyond the ongoing criminal probe, an independent investigation under the BUDS Act is critical. They argue that the scam falls squarely within the Act’s purview, as it involved unauthorized public fund collection under false promises.
Justice Kauser Edappagath has directed the State’s counsel to respond and scheduled further hearings for March 27. The petitioners emphasize that despite repeated appeals to the Additional Chief Secretary—tasked with enforcing the BUDS Act—no action has been taken. They stress that Section 7(3) of the Act allows authorities to provisionally seize the assets of the accused, preventing additional financial damage.
Beyond financial losses, the affected NGOs argue that their reputations—built over decades—have been tarnished due to their inadvertent role in the fraudulent scheme. They now seek immediate legal intervention to safeguard public funds and restore their credibility.
