According to a report from 7 October 2026, the Enforcement Directorate (ED) has uncovered an alleged bribery and money-laundering network involving senior executives from at least 40 public sector undertakings (PSUs), public sector banks, corporate entities, and several charitable trusts. According to the investigation, hundreds of crores of CSR funds meant for social welfare and community development were routed through multiple trusts and later diverted through intermediaries and shell companies. The case centres on Dharmendra Kumar Chandradey, who reportedly posed as a medical doctor for many years despite lacking the relevant qualifications, ran several charitable organisations that received CSR donations from companies. The ED alleges that instead of being fully used for charitable activities, a large portion of these funds was returned in cash to donors after deducting commissions and kickbacks. The agency also claims that some projects were either only partly implemented or not carried out to the extent suggested by the amount of funding received. As a result, money intended to support communities through initiatives such as education, healthcare, and development programmes may not have reached the people who needed it most. Searches conducted across multiple locations reportedly led to the seizure of documents, transaction records, and unaccounted cash.
The investigation raises concerns about transparency, accountability, and the effective use of CSR funds by both donating companies and recipient charitable organisations and may trigger discussions regarding reforms to CSR governance, monitoring systems, reporting standards, and oversight mechanisms for charitable trusts and implementing agencies. This may affect public trust in the sector more broadly and could make donors, corporate partners, and authorities more cautious when engaging with civil society organisations. Such allegations of misuse and diversion of CSR funds could result in heightened due diligence requirements, increased compliance obligations, and greater caution among companies when selecting civil society partners. While such measures may improve accountability, they could also increase administrative burdens for legitimate civil society organisations. In order to ensure effective access to CSR funding for CSOs, any reforms or accountability measures taken need to target misuse of funds without creating unnecessary barriers for compliant civil society organisations.