Mumbai, Oct 5 — The ED seized Rs 21 lakh and digital evidence during searches at eight locations across Maharashtra, West Bengal, Gujarat and Delhi-NCR in money laundering cases linked to alleged bogus Corporate Social Responsibility (CSR) donations worth Rs 200 crore, an official said on Monday.
The searches conducted by the Enforcement Directorate (ED), Mumbai Zonal Office-I, on October 1, 2026, have prima facie revealed a network of charitable trusts, trustees, CSR agents, middlemen and equipment suppliers involved in the diversion and recycling of CSR funds, the ED said in a statement.
The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in the case of Dharmendra Kumar Chandraveer Singh and others relating to an alleged bogus CSR donation racket, the statement said.
During the searches, cash amounting to Rs 21 lakh was seized. Various incriminating documents and digital devices were also found and seized during the search proceedings, it said.
The ED investigation was initiated under PMLA based on an FIR registered at Juhu Police Station against Dharmendra Kumar Chandraveer Singh for offences under the Maharashtra Medical Practitioners Act, 1961, the National Medical Commission Act, 2019 and the Bharatiya Nyaya Sanhita, 2023, including offences corresponding to Sections 420, 467, 471 and 475 of the IPC, which are scheduled offences under the PMLA.
Investigation revealed that Dharmendra Kumar Chandraveer Singh, despite not possessing any recognised medical qualification or registration with the Medical Council and having studied only up to Class XII, allegedly represented himself as a doctor and used the title “Doctor” for nearly three decades, the ED said.
Capitalising on such representation and the credentials associated with the title of “Doctor”, he established and operated a network of charitable trusts and entities engaged seemingly in healthcare-focused CSR activities, through which substantial CSR funds were mobilised from PSUs and private corporates, the ED said.
At least 40 PSUs and Public Sector Banks across the country have provided CSR donations to the trusts operated by the accused, the ED said.
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, the ED said.
Investigation revealed that the trusts were projected as vehicles for funding the procurement of high-end medical machinery and equipment for hospitals and healthcare institutions, the ED said.
When such institutions cited a lack of funds for procurement of the required equipment, they were connected with public representatives of the concerned area, who in turn issued recommendations for funding of such projects specifically through the trusts operated by Singh, the statement said.
Enquiries have revealed that PSUs made CSR donations to these trusts primarily on the strength of such recommendations received from public representatives or their staff, it said.
Investigation revealed that CSR contributions from private entities were returned substantially in cash to the contributors after deduction of a small commission, it said.
Searches revealed a network of CSR 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, it said.
The CSR mechanism was utilised as a conduit for conversion of accounted funds into unaccounted cash. CSR funds amounting to Rs 200 crore have been routed through the above mechanism, the ED said.