CSR Funds Scam: NGOs Approach Kerala High Court Seeking Investigation, Action Under Banning Of Unregulated Deposit Schemes Act

The matter came up before Justice Kauser Edappagath today and it is posted to March 27 for further consideration. The Public Prosecutor sought time to get instructions.

The allegation is that National NGO's Confederation, founder K N Ananda Kumar, Secretary Ananthu Krishnan, Directors Sheeba Suresh, Jayakumaran Nair and Beena Sebastian persuaded the Petitioner organizations to secure funds from target beneficiaries by claiming that they were procuring products like two-wheelers, laptops, sewing machines at half price.

The Petitioner organizations were made to believe that the scheme was carried out by securing the remaining amount through CSR contributions from various companies. The Petitioner organizations were tasked with collecting funds deposited by various beneficiaries and forward them to the Secretary.

The plea stated that the Petitioner organizations had become implementing agencies and received several bookings and they collected booking amounts and transferred it to various agencies specified by the respondents.

It is submitted that the scheme promoted by the Petitioner organizations falls under 'Unregulated Deposit Scheme' which is prohibited under the BUDS Act. It is submitted that no investigation has been conducted and no actions have been taken against the respondents under the BUDS Act.

The Petitioner organizations wants a detailed investigation into the activities of the respondents under the BUDS Act. They have thus submitted representations before the Chief Secretary, who is the competent authority under the BUDS Act to investigate and take action against the respondents. The Petitioner organizations thus seeks direction from the Court to the Chief Secretary for investigating and taking action.

Plea has been moved by Advocates K.Dhruv Kumar, Shakthi Prakash, Harikrishnan M.S.

Case Title: Gramasree Mission And Others v State of Kerala

Case No: WP (Crl) 299/2025