CSR Funds Scam: Kerala High Court Denies Bail To Founder Of National NGO's Confederation Anand Kumar

"Dismissed", ordered Justice P. V. Kunhikrishnan.

National NGO Confederation is allegedly involved in a large-scale scam of cheating people after promising the two-wheelers, sewing machines and laptop for half price, claiming that they have access to CSR funds of various large companies. The Crime is currently investigated by the Crime Branch. It is estimated that the collected money will come around Rs. 400-500 Crore. The Secretary of the NGO, Ananthu Krishnan is also being investigated in this case.

The bail was sought in 2 cases - one for cheating members of the SEED Society in Muvattupuzha by allegedly collecting Rs. 7,59,81,000 on fake promises and the other for cheating members of the SEED society Kannur by collecting Rs. 2,96,40,000 on the fake promise of giving women scooter at half-prize. The petitioner is arraigned as the second accused in the case filed for cheating members of SEED society Muvattupuzha and is booked under Sections 316(2), 318(4), 61(20 r/w 3(5) of BNS. In addition to these cases, the investigating officer has informed the court that 24 other crime branch cases is registered against the petitioner. The Public Prosecutor informed the Court that custodial interrogation is necessary in all these cases. 

K. N. Anand Kumar was taken into custody by the Crime Branch on March 11. Kumar has stated that he had no involvement in the scam. In the trust deed of the National NGO Confederation, it was given that Ananthu Krishnan will be fully responsible for the financial transaction related to the half-prize scheme. However, the Court rejected this argument saying that the petitioner being the founder and Management trustee of the Confederation  should have known whether the financial transactions for half-prized scheme was conducted in the legal or illegal manner. Furthermore, the petitioner had gone with Ananthu Krishnan for several functions to get beneficiaries to the scheme. The Court said that at this stage, it is not believable that the petitioner attended these events without verifying the details.

Further, the report submitted by the investigating officer stated that several transactions to the account of Sathya Orphanage Trust, a trust founded by the petitioner, seems to be the payment made by several women towards the half-prize scooter scheme.

Taking these things into account, Court said it cannot grant bail at this point.

"The beneficiaries in this case are poor people who are in the lower strata of society. When there was an offer that they would get their dream two-wheeler, sewing machine and other home appliances at half the rate, they blindly relied on the petitioner and the other accused and consequently paid their hard-earned money. It's not a single instance. Thousands of people paid huge amounts and crores of rupees were collected by the accused. The Court cannot shut the eyes to the tears of these poor people. Therefore, the petitioner is not entitled to any discretionary relief at this stage."

During the bail hearing, the counsel for Ananda Kumar raised certain health issues. However, High Court said that bail will be given on health ground only if adequate treatment facility is not available in the jail.

Case Title: K. N. Anand Kumar v State of Kerala

Citation: 2025 LiveLaw (Ker) 232

Case No: BA 3680 of 2025

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