NEW DELHI: Enforcement Directorate has unearthed a bribery racket involving top executives of at least 40 public sector undertakings and government banks, besides some corporate houses engaged in siphoning off and laundering hundreds of crores of corporate social responsibility (CSR) funds channelled through multiple charities promoted by a class XII dropout, who has been caught impersonating as a medical doctor for close to three decades.According to ED, the fake doctor, Dharmendra Kumar Chandradev, received CSR donations in his multiple trusts registered for the purpose of laundering money meant for charity and exempted from taxation. These funds were further returned back to the “donor” in cash, after retaining his commission. The racket involved some corporate houses, hospitals, public sector companies and govt banks. Top executives of these PSUs were heavily bribed for releasing CSR funds.On Oct 1, the central agency carried out searches at eight locations across Maharashtra, Bengal, Gujarat and Delhi-NCR related to these bogus donations cases. The agency seized several pieces of evidence and details of transactions related to PSU executives and corporate hospitals, in addition to Rs 21 lakh in unaccounted cash.“The CSR mechanism was utilised as a conduit for conversion of accounted funds into unaccounted cash. Funds amounting to Rs 200 crore have been routed through the above mechanism,” ED has estimated through its preliminary investigation.The agency further said its probe revealed that CSR contributions from corporate houses were “returned substantially in cash” to the contributors after deduction of a small commission.
Share your thoughts in the comments
Be respectful · TOI community guidelines
Searches have also revealed a network of agents and intermediaries who channelled CSR funds to the trusts, which were thereafter routed through shell entities controlled by market operators. Most of these entities have also been flagged in multiple GST fraud investigations.“At least 40 PSUs and public sector banks across the country have provided CSR donations to the trusts operated by the accused. Several projects were only partially executed or not executed in proportion to the funds received, while vendor bills were inflated and excess funds routed through bogus or shell entities. Kickbacks and commissions were allegedly paid to intermediaries facilitating the CSR funding,” ED said.