The Enforcement Directorate recently uncovered a massive bribery racket involving the laundering of hundreds of crores of Corporate Social Responsibility (CSR) funds. The ED investigation reportedly found several top executives of at least 40 Public Sector Undertakings (PSUs), government banks, and multiple corporate houses involved in the racket.
The financial watchdog found that a Class XII dropout, Dharmendra Kumar Chandradev Singh, who pretended to be a doctor, routed the CSR funds through several charities. Chandradev received CSR funds meant for charitable purposes in the name of multiple registered trusts for laundering. He returned the CSR funds to the original donors after keeping his cut.
ED, Mumbai has conducted search operation across eight locations in Maharashtra, West Bengal, Gujarat, and Delhi-NCR under the PMLA, 2002 targeting Dharmendra Kumar Chandradev Singh and others in an alleged bogus CSR donation racket where the mechanism was used as a conduit to convert accounted funds into unaccounted cash, resulting in the seizure of ₹21 Lakh (Approx.) in cash alongside incriminating documents and digital devices, while uncovering that ₹200 Cr. (Approx.) in CSR funds were routed through the illicit network.
— ED (@dir_ed) October 5, 2026
According to the ED, Singh did not study beyond Class XII and possesses no recognised medical qualification. However, he presented himself as a doctor for about three decades. He established a network of charitable trusts and entities engaged in healthcare-focused CSR activities. The network was used to divert CSR funds from PSUs and private companies.
Top executives of the PSUs from which the CSR funds originated received heavy bribes for releasing the funds. Several corporate houses, hospitals, public sector companies, and government banks were involved in diversion and laundering of CSR funds. “The CSR mechanism was utilised as a conduit for conversion of accounted funds into unaccounted cash. Funds amounting to ₹200 crore have been routed through the above mechanism,” 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. The agency found that CSR funds were released for multiple projects, but some of these were only partially executed, and many others were not executed at all. The funds were released by paying hefty commissions to concerned executives and intermediaries. The expenditure of funds was shown by inflating vendor bills and routing the funds through shell entities.
“Further investigation has 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 agency said, explaining the modus operandi of the racket. “When such institutions cited 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,” it added.
Last week, on October 1, 2026, the central agency conducted raids in connection with the racket at 8 locations across various states, including Maharashtra, Bengal, Gujarat and Delhi-NCR. During the raids, the ED found unaccounted cash worth ₹21 lakh, incriminating evidence, and details of transactions linked to many top PSU executives and corporate hospitals.
The case came to light after an FIR was lodged at Juhu police station against Chandradev under the provisions of the Maharashtra Medical Practitioners Act, 1961, the National Medical Commission Act, 2019, and the Bharatiya Nyaya Sanhita, 2023. The FIR led to the current investigation by the ED.
