ED seizes ₹21 lakh in bogus CSR donation racket probe

This is a press release issued by the Directorate of Enforcement (ED), Mumbai Zonal Office-I, announcing search operations conducted under the Prevention of Money Laundering Act (PMLA), 2002, in an alleged bogus Corporate Social Responsibility (CSR) donation racket. It matters to citizens as it details how CSR funds from public and private entities were allegedly diverted and converted into unaccounted cash.

Who it concerns: The document concerns Dharmendra Kumar Chandradev Singh and others, the Directorate of Enforcement (ED), at least 40 Public Sector Undertakings (PSUs) and Public Sector Banks, private corporates, charitable trusts, CSR agents, middlemen, equipment suppliers, and public representatives.

What the ED says it did

• ED conducted search operations on 01.10.2026 at 8 locations across Maharashtra, West Bengal, Gujarat, and Delhi-NCR.
• Approximately ₹21 lakh in cash, incriminating documents, and digital devices were seized.
• The investigation was initiated based on an FIR registered at Juhu Police Station for offences under the Maharashtra Medical Practitioners Act, 1961, the National Medical Commission Act, 2019, and the Bharatiya Nyaya Sanhita, 2023.
• The accused allegedly represented himself as a doctor for nearly three decades despite having no recognized medical qualification or registration.
• A network of charitable trusts was used to mobilize CSR funds from PSUs and private corporates.
• Vendor bills were allegedly inflated, and excess funds were routed through bogus or shell entities.
• Kickbacks and commissions were allegedly paid to intermediaries facilitating CSR funding.
• Public representatives allegedly issued recommendations for funding projects through the accused's trusts, which PSUs used as the basis for donations.
• CSR contributions from private entities were allegedly returned in cash after deducting a small commission.
• Approximately ₹200 Crore in CSR funds were routed through this mechanism to convert accounted funds into unaccounted cash.

Also in the document

• The accused had studied only up to Class XII.
• Several projects funded by the trusts were only partially executed or not executed in proportion to the funds received.
• Most of the shell entities involved in routing funds have been flagged in multiple GST fraud investigations.
• Further investigation is currently under progress.