Kolkata ED Tightens Grip, Attaches ₹18.5 Crore Assets of Krishna Damani & Family
(By Syed Ali Taher Abedi)
Kolkata, April 9, 2026 – In a major blow to alleged financial misconduct in the education sector, the Directorate of Enforcement (ED)’s Kolkata Zonal Office has provisionally attached movable properties worth Rs 18.50 crore, including mutual funds and shares, belonging to Krishna Damani, his family members, and entities under his control.
The action, taken under the Prevention of Money Laundering Act (PMLA), 2002, originates from an ongoing probe into the siphoning of over Rs 20 crore from the South Point Education Society (SPES), a prominent charitable trust running educational institutions in the city.
The investigation began following an FIR lodged by Kolkata Police, which accused Damani a trustee of SPES of orchestrating a sophisticated scheme to divert school funds under the pretext of manpower supply and other services.
ED sleuths uncovered that Damani and his family allegedly funnelled more than Rs 20 crore to companies they owned and controlled, exploiting his position to dominate the society’s Board of Trustees by sidelining other members.
Once in firm control, Damani is said to have abused his fiduciary duties, channelling charitable funds meant for education into personal coffers. “He ensured payments were backed by fabricated vouchers, fake invoices, and fictitious employee records including salaries to non-existent staff and his own personal employees drawn directly from society accounts,” an ED statement revealed.
This web of deceit reportedly extended to layering and integrating the illicit proceeds through inflated salaries, directors’ remuneration, and commissions disbursed to family members and controlled firms, with investments parked in mutual funds and shares.
The attached assets—totalling Rs 18.50 crore include 55 mutual fund units and 59 shares held in the names of Damani, his relatives, and entities such as M/s Global Staffing Services, M/s Pastille Mercantile Pvt. Ltd, M/s Karni Impex, and M/s Shanu Fintrade Pvt. Ltd. These firms stand accused of harbouring the proceeds of crime.
This is not the first legal salvo in the case.
In February 2026, the ED filed a prosecution complaint before the Special Court (PMLA) at Bichar Bhavan, Kolkata, marking a significant step in holding trustees accountable for betraying public trust.
The revelations raise serious questions about governance in charitable education societies, where fiduciary lapses can erode funds vital for underprivileged students.
ED officials confirmed that further investigation continues, with potential for additional attachments and prosecutions as the money trail unfolds.
Damani and his associates could not be reached for comment at the time of filing.
