The Enforcement Directorate (ED) has uncovered an alleged ₹200 crore bogus CSR donation and money-laundering racket involving charitable trusts, intermediaries and shell entities. According to ED, at least 40 PSUs and Public Sector Banks had provided CSR donations to trusts operated by the accused, while parts of the funds were allegedly diverted through inflated bills, shell entities and commissions.
The Directorate of Enforcement (ED), Mumbai Zonal Office-I, has carried out searches in connection with an alleged bogus Corporate Social Responsibility (CSR) donation racket involving around ₹200 crore.
According to an official ED press release dated October 5, 2026, searches were conducted on October 1, 2026 at eight locations across Maharashtra, West Bengal, Gujarat and Delhi-NCR under the Prevention of Money Laundering Act, 2002. The searches were conducted in the case of Dharmendra Kumar Chandradev Singh and others. ED seized approximately ₹21 lakh in cash, along with documents and digital devices during the operation.
At Least 40 PSUs and Public Sector Banks Gave CSR Donations
One of the most significant findings disclosed by ED is that at least 40 Public Sector Undertakings and Public Sector Banks across India had provided CSR donations to trusts operated by the accused.
ED said its searches prima facie revealed a network involving:
- charitable trusts and trustees;
- CSR agents and middlemen;
- equipment suppliers;
- bogus or shell entities; and
- market operators.
The agency alleges that several CSR-funded projects were only partly implemented or were not executed in proportion to the funds received. Vendor bills were allegedly inflated and the excess amounts were routed through bogus or shell entities. ED also alleged that commissions and kickbacks were paid to intermediaries who facilitated CSR funding.