New Delhi, 30 September (H.S.): The Enforcement Directorate (ED) on Wednesday conducted simultaneous searches at eight locations across four states as part of its investigation into an alleged fake corporate social responsibility (CSR) donation network. Teams from the ED’s Mumbai Zonal Office are carrying out searches at five locations in Maharashtra, one in West Bengal, one in Gujarat and one in Delhi-NCR. The action is being conducted in connection with a case registered against Dr Dharmendra Kumar and others.

The searches have covered premises linked to market operators, trustees and intermediaries allegedly associated with the network. According to the investigating agency, its preliminary findings have uncovered an alleged fraudulent CSR network involving hundreds of crores of rupees. The network allegedly facilitated the diversion of mandatory CSR contributions back to the concerned companies or donors after deducting commissions.

During the investigation, the ED reportedly found information regarding the creation of trusts allegedly established specifically to facilitate the transfer of CSR funds from one entity to another and ultimately route the money back to the donors. According to the agency, funds ostensibly contributed for CSR purposes were allegedly channelled back to the donors through these trusts after a commission was deducted.

The ED said the searches covered market operators, trustees and intermediaries allegedly connected with the network. Documents and electronic devices recovered from the premises are being examined. The agency is conducting forensic analysis of the electronic devices and examining the information obtained from them to establish further links in the case.

The ED said the examination of electronic devices and further questioning in connection with the investigation are continuing.

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Hindusthan Samachar / Jun Sarkar