ED Charges Six KVIC Employees in Rs 3.89 Crore Fund Misappropriation Case
Synopsis
In a significant legal action, the ED has charged six KVIC employees for allegedly misappropriating Rs 3.89 crore in government funds. The case uncovers a web of deceit involving fictitious entities and shell companies, raising serious concerns over financial governance.
Key Takeaways
Charges filed against six KVIC employees for fund misappropriation.
Rs 3.89 crore allegedly siphoned off through fraudulent means.
Fictitious entities were created to facilitate the crime.
Extensive investigations led to asset attachment worth Rs 71.91 lakh .
Trust returned Rs 31.11 lakh to the ED voluntarily.
Ranchi, March 25 (NationPress) The Enforcement Directorate (ED) has submitted a chargesheet under the Prevention of Money Laundering Act (PMLA), 2002, against six individuals implicated in the alleged embezzlement of government funds from the Khadi and Village Industries Commission (KVIC) State Office in Ranchi.
This prosecution complaint was lodged on March 24, 2026, with the Special Judge, CBI-cum-Special Judge under the PMLA in Ranchi, targeting Sunil Kumar (a former Executive at KVIC Ranchi), Aman Kumar, Shahil, Priya, Binod Kumar Baitha (previously a Senior Executive in Administration and Human Resources at KVIC Ranchi), and Banku Nishad.
The ED's investigation into the money laundering case was initiated based on an FIR and chargesheet from the CBI’s Anti-Corruption Branch, Ranchi. The underlying offences include criminal conspiracy, cheating, forgery, and criminal misconduct as outlined in the IPC and the Prevention of Corruption Act.
As per the ED's findings, Sunil Kumar, in collaboration with his relatives and other co-accused, set up fictitious entities, including a shell company employing a forged Corporate Identification Number (CIN).
They reportedly misappropriated funds amounting to approximately Rs 3.89 crore that were sanctioned under the Khadi Reform and Development Programme (KRDP), redirecting these funds into personal bank accounts of his relatives without performing any legitimate work.
The co-accused relatives allegedly relinquished their banking credentials and endorsed blank cheques, which enabled the acquisition, possession, and layering of the illicit proceeds through various proxy accounts.
The laundered funds were subsequently used to purchase immovable properties registered in the name of Sunil Kumar’s wife in Ormanjhi, Ranchi, with the true sale value intentionally concealed through deliberate undervaluation in the registered deed documents.
During the inquiry, the ED executed a search on March 20, 2025, at Sunil Kumar's residence under Section 17 of the PMLA.
The agency provisionally seized assets worth Rs 71.91 lakh, a move later validated by the Adjudicating Authority.
Furthermore, Rs 31.11 lakh that was transferred to the Ashram Kalyan Nidhi Nyas Trust, Ranchi, from the illegal proceeds, was voluntarily returned by the trust and deposited with the ED.
Point of View
This case underscores the urgent need for accountability and transparency in government-funded projects. The misuse of public funds not only undermines trust but also hampers the development of crucial sectors such as rural industries. Rigorous investigations like this are vital to ensure justice and restore faith in public institutions.
NationPress
11 May 2026
Frequently Asked Questions
What is the basis for the ED's chargesheet?
The chargesheet is based on an FIR and chargesheet from the CBI’s Anti-Corruption Branch, involving allegations of criminal conspiracy, cheating, forgery, and criminal misconduct.
How much money was allegedly siphoned off?
Approximately Rs 3.89 crore was allegedly misappropriated from government funds allocated under the Khadi Reform and Development Programme.
What actions have been taken against the accused?
The ED has filed a chargesheet against six individuals and has provisionally attached assets worth Rs 71.91 lakh.
What role did fictitious entities play in this case?
Fictitious entities, including a shell company, were created using a forged Corporate Identification Number to divert funds into personal accounts.
What was the outcome for the Ashram Kalyan Nidhi Nyas Trust?
The trust voluntarily returned Rs 31.11 lakh, which was derived from the proceeds of crime, to the ED.
