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Delhi Police arrests MBA graduate from Bengaluru and CA from Patna for duping IT ministry of over Rs 3 crore

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ET OnlineLast Updated: May 14, 2025, 04:08:00 PM IST

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Delhi Police arrested Prashant Agarwal and Sudhanshu Kumar Rakesh. They misused over Rs 3 crore meant for startups. The Ministry of Electronics and Information Technology released the funds. Agarwal's organization was to support startups. Instead, fake documents were submitted. Rakesh, a chartered accountant, provided these documents. Police arrested Agarwal in Bengaluru and Rakesh in Patna. The investigation is ongoing.

Arrested for Corruption in India — Representative image created by AI

The Economic Offences Wing (EOW) of Delhi Police has arrested two men, including an MBA graduate and a chartered accountant, for allegedly misusing over Rs 3 crore meant for startups under a government scheme. The funds were released by the Ministry of Electronics and Information Technology (MeitY) through its Startup Hub, a TOI report stated.

Complaint from MeitY Startup Hub triggered probe

According to the police, the case was registered after the MeitY Startup Hub (MSH) filed a complaint regarding the suspected misuse of funds under the SAMRIDH scheme. The accused have been identified as Prashant Agarwal (34), an MBA graduate from Bengaluru, and Sudhanshu Kumar Rakesh (35), a chartered accountant from Patna.

Accelerator misused role and created fake papers

Under the SAMRIDH scheme, accelerators are selected to support startups by providing funding and structured help. Agarwal, as director of a not-for-profit society, was appointed as one of the accelerators. His organisation proposed to support eight startups and committed to funding them.

Based on this proposal, MSH released over Rs 3 crore to the organisation. However, police said the funds were never passed on to the startups. Instead, fake utilisation certificates were submitted to MSH. These documents, which claimed the funds had been used properly, carried the name and seal of CA Rakesh.

Forgery used to cover up fund misuse, say police

An officer said, “The documents were used to mislead MSH and cover up the misappropriation of govt funds meant for startup development.”

Accused arrested from Bengaluru and Patna

Amit Verma, Deputy Commissioner of Police (EOW), said, “Agarwal was arrested in Bengaluru, and based on his disclosure, Rakesh, his alleged co-conspirator, was arrested in Patna.”

The investigation into the alleged diversion and misuse of government funds is ongoing.

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