A massive money laundering scam worth nearly ₹5000 crore has been uncovered by the Income Tax Department in Agra, exposing large-scale misuse of Corporate Social Responsibility funds. Investigators revealed that money meant for social development projects was illegally routed abroad through shell companies and then brought back into India using diamond smuggling networks.
Officials stated that CSR funds were sent to countries including China, Hong Kong, Malaysia, Singapore, and Dubai through fake firms. The money was used to purchase diamonds which were later brought to Surat in Gujarat. These diamonds were sold, and the cash generated was channelled back to companies through hawala networks.
More than 50 shell firms have been identified so far, many of them reportedly registered using Aadhaar cards of poor labourers, pointing towards widespread identity misuse. The case surfaced after funds from reputed companies were traced to multiple trusts, including those based in Mathura, Ahmedabad, and Bhilwara. Action has also been initiated against a chartered accountant from Mathura who was linked to fund auditing one of the involved trusts.
The investigation is being carried out by over 200 Income Tax officials under the leadership of Deputy Director Hardik Agarwal and supervised by Principal Director (Investigation) Kanpur Ajay Kumar Sharma. Raids are currently underway at around 50 locations across Mumbai, Kolkata, Ahmedabad, Surat, Bengaluru, Bhilwara, and Mathura.
According to officials, the operation was launched after four months of extensive surveillance and field verification. Searches began at 6:30 am on Tuesday and are expected to continue for at least two more days. This is the first money laundering fund case of such magnitude reported in the Agra jurisdiction of the Income Tax Department.
Authorities believe the total scam fund value could exceed the estimated ₹5000 crore as the probe widens. Diamond traders connected to the buying and selling operations are also likely to come under scrutiny. The ongoing investigation continues to reveal the deep network of shell firms, hawala operators, and smuggling channels involved in one of India’s largest corporate frauds.
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