The Ministry of Electronics and Information Technology (MeitY) rolled out the SAMRIDH scheme to bolster India’s startup ecosystem, offering up to ₹40 lakh per startup in matched funding through selected accelerators. However, what was meant to empower entrepreneurship turned into a fraud case as two men—Prashant Agarwal, director of M/s HPPL Foundation, and Sudhanshu Kumar Rakesh, a chartered accountant—allegedly exploited the scheme for personal gain.
According to Delhi Police, the duo falsely represented themselves to receive ₹3.04 crore in funds for eight startups. Instead of transferring the money, they submitted forged utilization certificates and retained the funds. Additional allegations suggest they also collected money directly from startup founders under false promises of disbursing government grants.
Forged Documents, Ghost Funds, and False Promises
The scheme’s misuse came to light after a complaint by Rashi Sharma, a MeitY Startup Hub (MSH) official, led to an investigation by the Economic Offences Wing (EOW). Fake certificates, forged seals, and fabricated financial statements were used to deceive authorities and mask the non-disbursal of funds.
Agarwal, originally from Chennai, held degrees in project management from Canada and an MBA from Bengaluru. He had founded M/s HPPL Foundation in 2022. Rakesh, his co-accused, completed his chartered accountancy in 2020 and was based in Nalanda. Together, they created a credible front to gain access to central funds while forging documentation behind the scenes.
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Police searches of Agarwal’s premises in Bengaluru yielded incriminating documents and digital evidence. Rakesh, arrested a week later in Patna, had fake certificate templates and rubber stamps on his computer—tools allegedly used for document fabrication.
A Wider Probe and Calls for Stricter Oversight
Authorities believe this may just be the tip of the iceberg. Further investigations are underway to trace additional beneficiaries, examine whether more startups were duped, and assess the broader misuse of accelerator-linked public funding. The duo has been booked under multiple sections of the IPC, and law enforcement is actively following digital and financial trails.
This case has raised serious questions about the due diligence protocols in place for disbursing public money to startup accelerators. Experts warn that unless MeitY and other departments install real-time fund tracking and third-party audits, similar schemes may remain vulnerable to white-collar exploitation masked under innovation and entrepreneurship.