The Income Tax Department in Agra has unearthed a massive money laundering racket worth ₹5000 crore, involving the misuse of Corporate Social Responsibility (CSR) funds. Investigators revealed that funds meant for social development were diverted abroad through shell companies and laundered back into India using diamond smuggling.
Money Sent to Multiple Countries
Officials said the CSR funds were routed to China, Hong Kong, Malaysia, Singapore, and Dubai via bogus firms. The money was then used to purchase diamonds, which were brought back to India. These diamonds were sold in Surat, Gujarat, and the proceeds were returned to companies in cash through hawala networks.
So far, more than 50 shell companies have been identified. Many of them were allegedly registered using Aadhaar cards of poor labourers, raising concerns about large-scale identity misuse.
Key Names and Trusts Under Probe
The case came to light after funds from reputed companies were traced to several trusts, including Mathura’s Janjagruti Seva Sansthan, Ahmedabad’s Ragini Ben Vidhik Chandra Seva Karya, and Bhilwara’s Dr Brajmohan Sapoot Kala Sanskriti Seva Sansthan. The department also took action against CA Ashutosh Agarwal of Mathura, who audited one of the involved trusts.
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Nationwide Search Operations
Over 200 Income Tax officials are part of the investigation, led by Deputy Director Hardik Agarwal and supervised by Principal Director (Investigation) Kanpur Ajay Kumar Sharma. Searches are being conducted at 50 locations across Mumbai, Kolkata, Ahmedabad, Surat, Bengaluru, Bhilwara, and Mathura.
Officials confirmed that the operation began after four months of surveillance and field verification. The searches started simultaneously at 6:30 am on Tuesday and are expected to continue for at least two more days.
First Case of Its Kind in Agra Region
This is the first such case of money laundering on this scale in the Agra jurisdiction of the Income Tax Department. Officials believe the total scam amount may exceed ₹5000 crore as the probe widens. Diamond traders linked to the buying and selling process are also likely to face scrutiny.
The investigation continues to expose the complex network of shell firms, hawala channels, and smuggling routes used to siphon CSR funds meant for welfare into one of India’s largest corporate frauds.
