In a major crackdown on financial misconduct, the Kolkata Zonal Office of the Enforcement Directorate (ED) has filed a prosecution complaint against Krishna Damani, a trustee of South Point Education Society (SPES). The charges, submitted on February 11, 2026, under the Prevention of Money Laundering Act (PMLA), 2002, before the Chief Judge of the City Sessions Court in Kolkata, accuse Damani of siphoning off over Rs 20 crore from school funds.
The case originated from an FIR registered by Kolkata Police, which prompted ED’s investigation into large-scale fund diversion. Special Court has issued a notice to the accused under Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita (BNSS) 2023. Probe revealed Damani’s iron grip over the Board of Trustees, sidelining other members to exert full control.
Exploiting his position, Damani allegedly transferred substantial school funds to companies owned by him and his family members under the guise of manpower services and other fictitious expenses. Payments were routed through fake vouchers, bogus invoices, and records of non-existent employees. Salaries were disbursed to his private staff from society accounts, while elite club memberships and personal expenses were footed with school money.
ED’s findings expose payments for services never rendered, including salaries during the lockdown period for phantom workers. The laundered proceeds were distributed as inflated salaries, director fees, and commissions to family members—wife, mother, and daughters—before being layered into mutual funds and investments to obscure the money trail.
This scandal ties back to Damani’s arrest by Kolkata Police in February 2024 over allegations of embezzling over Rs 30 crore via relatives’ firms like Global Staffing Services and Pastil Mercantile. ED conducted searches in September 2024, leading to initial police custody before bail. The ongoing probe highlights the misuse of charitable institution funds for personal gain, with ED anticipating more revelations and potential arrests.