The Enforcement Directorate’s Kolkata unit has escalated its battle against corruption in educational trusts by charging Krishna Damani with money laundering. On February 11, 2026, ED lodged a prosecution complaint in the City Sessions Court, detailing how the SPES trustee orchestrated a massive fund diversion exceeding Rs 20 crore.
Stemming from a Kolkata Police FIR, the investigation uncovered Damani’s dominance over the society’s governance. He single-handedly manipulated the board to funnel school resources into family-controlled entities. Manpower services served as the perfect cover for these illicit transfers, backed by fabricated documents and payrolls for ghost employees.
Deep dives into transactions showed school coffers drained for Damani’s luxuries: club fees, private bills, and even lockdown salaries for staff that never existed. The scheme’s sophistication lay in reallocating crime proceeds—padded payments to kin as fees and commissions—then investing in mutual funds for layering.
Damani’s troubles began in 2024 with his arrest amid claims of Rs 30 crore pilferage through linked companies. Post-ED raids, he secured bail, but the noose tightens now. This case underscores vulnerabilities in charitable oversight, as authorities vow to unearth accomplices and recover assets. With evidence mounting, Damani’s empire of deceit faces dismantling.