Income Tax Department uncovers misuse of CSR funds; diamonds bought overseas, smuggled into India, sold through local jewellers.
NEW DELHI (India CSR) — Amar Ujala has reported a major revelation in the misuse of Corporate Social Responsibility (CSR) funds. An income tax investigation has uncovered that nearly Rs. 5,000 crore, meant for social development, was illegally diverted through shell companies in China, Singapore, Malaysia, Hong Kong, and Dubai. The diverted money was allegedly used to purchase diamonds abroad and smuggle them back into India.
CSR Funds Routed Through Trusts
According to Amar Ujala’s report, prominent Indian companies had deposited CSR contributions with certain trusts, including:
- Jan Jagriti Seva Sansthan, Mathura
- Ragini Ben Vipin Chandra Seva Karya Trust, Ahmedabad
- Brij Mohan Sapoot Kala Sanskriti Seva Sansthan, Bhilwara
Instead of being utilized for welfare activities, the funds were allegedly transferred to overseas shell companies. These entities later facilitated diamond purchases through jewellers, with the stones smuggled into India for resale.
Smuggling Trail Unearthed
So far, investigators have traced five confirmed cases of diamonds being brought into India through this illegal route. Officials believe the modus operandi involved laundering CSR money under the guise of charity but diverting it to illicit trade networks.
Search Operations Across Cities
Acting on the findings, nearly 200 Income Tax officials are conducting simultaneous searches across Kolkata, Bhilwara, Ahmedabad, Surat, and Mumbai. Around 50 premises linked to trustees of the suspect organizations are under the scanner. Officials believe the scale of the scam may be much larger, with more individuals likely to come under investigation.
Chartered Accountants Under Lens
The media report also mentioned that the role of several chartered accountants has come under suspicion. Searches at the Mathura residence of CA Ashutosh Agrawal led investigators to Mumbai-based CA Pankaj Somani and Kolkata-based CA Supriyo Saha, who are alleged to have aided in the diversion of funds. Their premises are also being searched.
Possible Major Scam
As Amar Ujala highlighted, this could turn out to be one of the biggest CSR fund misuse scandals in the country, with more individuals and companies likely to face investigation in the coming days.
(India CSR)
