Shocking revelations from the ED paint a grim picture of betrayal in Kolkata’s education sector. Trustee Krishna Damani stands accused in a fresh prosecution complaint filed under PMLA on February 11, 2026, for masterminding the diversion of over Rs 20 crore from South Point Education Society’s coffers.
Kolkata Police’s initial FIR set the stage for ED’s probe, exposing Damani’s takeover of the trustee board. With unchecked power, he diverted funds masquerading as legitimate service payments to his and his family’s firms. Fake invoices, sham vouchers, and payrolls for imaginary staff facilitated the heist.
The misuse extended to personal indulgences—elite memberships, household costs, and fictitious lockdown payouts. Proceeds were cleverly funneled to family as exorbitant remunerations, then laundered through investments, completing the money laundering cycle.
Echoing his 2024 arrest over a Rs 30 crore fraud involving entities like Global Staffing Services, ED’s September searches bolstered the case. Despite bail, Damani now confronts court summons. This exposé on charitable fund abuse signals a broader cleanup, with ED probing deeper for additional culprits and hidden trails.