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ED uncovers ‘bogus’ CSR donation racket, raids in 4 states

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The Enforcement Directorate (ED) on Wednesday conducted searches in four states as part of an investigation linked to an alleged bogus Corporate Social Responsibility (CSR) donation racket, officials said.Sources said a total of eight locations in Maharashtra, West Bengal, Gujarat and Delhi-NCR were covered as part of the action. The premises belonged to market operators, trustees and middlemen after it was prima facie found that a “bogus” CSR racket was operating, which allegedly ran into hundreds of crores of rupees, they said.It has been alleged that trusts were created specifically for channelising back the mandatory CSR contributions to the donors in lieu of a commission. Further inquiry into the case is underway, while devices are also being examined.

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