₹500 crore CSR scam: ED raids multiple locations in Kerala

February 19, 2025 Hot from the Oven Valli Sarvani

Financial frauds disguised as social service schemes are becoming increasingly common, and one recent case in Kerala has drawn attention.

On Tuesday, the Enforcement Directorate (ED) carried out searches at 12 locations across the state.

These raids were connected to a ₹500 crore scam involving Corporate Social Responsibility (CSR) funds.

Investigators believe that a group of non-governmental organizations (NGOs) misused CSR funds by offering products like scooters, laptops, and home appliances at half price. They claimed these products were part of a social service initiative.

The main person behind this scam is a 26-year-old man. Other key figures under investigation include the chairman of a Trust and a few political leaders.

The investigation began after the Crime Branch filed several cases. The ED then launched its own inquiry to look into potential money laundering activities disguised as CSR projects.

According to officials, the man managed 21 bank accounts and collected ₹548 crore from nearly 30,000 applicants.

These applicants were promised discounted products, with the remaining cost supposedly covered by CSR funds from corporate sponsors.

In the past, the Crime Branch had raided the man’s office in Kochi. On Monday, the court approved his two-day police custody for further questioning.

Meanwhile, the trust chairman filed an anticipatory bail plea in the Thiruvananthapuram Sessions Court after being booked in multiple cases related to the scam.

The court will review his plea soon. In a separate development, a public interest litigation (PIL) was filed in the High Court regarding an FIR against a former High Court judge.

The petition claims that the FIR was filed without a proper preliminary investigation, which could harm the reputation of the judiciary.

The judge is allegedly connected to the NGO confederation behind the scam.

As authorities continue to investigate the flow of funds, deeper connections in the scandal are coming to light.

With several legal battles ahead, this case highlights the need for stronger regulations and oversight in CSR funding to prevent misuse and ensure transparency.

Image Credit: Lynnheatherklenzner, CC BY-SA 4.0, via Wikimedia Commons