The Enforcement Directorate (ED) seized ₹21 lakh in cash along with digital evidence and incriminating documents during searches at eight locations spread across Maharashtra, West Bengal, Gujarat, and Delhi-NCR on 1 October 2026, in a money laundering investigation linked to an alleged bogus Corporate Social Responsibility (CSR) donation racket worth ₹200 crore. The searches were conducted by the ED Mumbai Zonal Office-I under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The Accused and the Alleged Fraud

The case centres on Dharmendra Kumar Chandraveer Singh, against whom a first information report (FIR) was earlier registered at Juhu Police Station in Mumbai for offences under the Maharashtra Medical Practitioners Act, 1961, the National Medical Commission Act, 2019, and the Bharatiya Nyaya Sanhita, 2023 — including sections corresponding to forgery, cheating, and fraud under the Indian Penal Code. These are scheduled offences under the PMLA, prompting the ED to initiate its own parallel investigation.

According to the ED, Singh allegedly represented himself as a doctor and used the title 'Doctor' for nearly three decades, despite holding no recognised medical qualification or registration with any medical council, and having studied only up to Class XII. Leveraging this fraudulent credential, he reportedly established and operated a network of charitable trusts ostensibly engaged in healthcare-focused CSR activities.

How the ₹200 Crore Racket Allegedly Worked

The ED's prima facie findings reveal a multi-layered scheme. Hospitals and healthcare institutions that cited a lack of funds for purchasing high-end medical equipment were reportedly connected with public representatives of their respective areas, who then issued recommendations for CSR funding specifically channelled through the trusts operated by Singh. Public Sector Undertakings (PSUs) and public sector banks reportedly made CSR donations to these trusts primarily on the strength of such recommendations.

At least 40 PSUs and Public Sector Banks across India reportedly donated to these trusts. The ED said several projects were only partially executed or not executed in proportion to the funds received. Vendor bills were allegedly inflated, and excess funds were routed through bogus or shell entities. Kickbacks and commissions were allegedly paid to intermediaries who facilitated the CSR funding pipeline.

For private-sector CSR contributors, the modus operandi was different: funds were reportedly returned substantially in cash to the original donors after deducting a small commission — effectively converting accounted corporate expenditure into unaccounted cash. Most shell entities involved have also been flagged in multiple GST fraud investigations, according to the ED.

What Was Seized

Searches at the eight locations yielded ₹21 lakh in cash, besides a range of incriminating documents and digital devices. The ED said the material seized would advance the money laundering investigation, with further action expected as the probe deepens. The agency has not yet disclosed whether any arrests have been made in connection with the searches.

Broader Implications for CSR Governance

This case adds to a growing body of enforcement action targeting misuse of the mandatory CSR framework under the Companies Act, 2013, which requires qualifying firms to spend a portion of their profits on social welfare. Critics and governance watchdogs have long flagged that the CSR ecosystem — involving trusts, intermediaries, and project implementers — lacks robust third-party verification mechanisms. The ED's findings, if substantiated, suggest that public representatives' recommendations were sufficient for PSUs to release funds without independent project audits. The investigation is ongoing, and the full extent of the network's reach is yet to be established.