Mathura witnessed a sharp turn this week as income-tax investigators raided the homes and offices of three chartered accountants. It all started with suspicious CSR fund movement. Authorities questioned CA Manish Singhal and took statements from Ashutosh and Suresh Mittal. Teams seized critical documents, pointing to a massive embezzlement nearly 900 crore rupees in fake-firm CSR transactions. One CA, Survesh Mittal, had rented space in the market area on Maholi road from Lalaram Sharma, who allegedly used that address to operate around two dozen bogus firms. Sharma siphoned off two tranches of 300 crore rupees each from a Haryana-based group under the CSR pretext. Income tax authorities suspect those funds wound back into corporate hands via layered transactions that mimic genuine CSR spending.
The Mathura raid is not isolated. Federal investigators across the country are exposing a trend where companies route mandatory CSR contributions through fake trusts and take most of the money back in cash or complex swaps. These companies then claim improper tax deductions under Sections 80G or 35AC and evade tax on the funds they recover. Investigators first acted in Delhi, targeting 11 to 12 bogus trusts. Now they are expanding the operation nationwide. CSR, meant as social investment, is turning into a shortcut for tax evasion. Lawmakers may soon tighten rules and documentation to prevent misuse and ensure CSR genuinely benefits society.
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