Delhi Baba accused of Rs 20-crore trust scam, court reserves order on bail

Chaitanyananda Saraswati, along with others, fraudulently created another trust, namely the Shri Sharda Institute of Management Research Foundation Trust, and funnelled all income of the institution into it, the prosecution told a Delhi court on Friday. It was alleged that once the trust was set up, Rs 20 crore in rent and other funds were diverted and misappropriated. Prosecutors said Rs 60 lakh was withdrawn just last month, and even after the registration of the FIR, another Rs 55 lakh was siphoned from Canara Bank through the foundation trust’s account.

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Police further alleged that Saraswati sublet properties, possessed two PAN cards and two passports, and operated multiple bank accounts under different names. He also allegedly demanded Rs 1 crore from the complainant to secure the addition of a new course.

The Patiala House Court reserved its order on the anticipatory bail plea filed by Saraswati in connection with the case of large-scale financial irregularities. Additional Sessions Judge (ASJ) Dr Hardeep Kaur, after hearing the arguments from both sides, said the order would be pronounced either later in the evening or on Saturday.

Senior advocate Ajay Burman, counsel for Saraswati, argued that an educational institution requires a trust to function and that not a single property had been sold. He maintained that the institute continued to be managed by trustees, and the FIR was lodged in haste immediately after Saraswati travelled out of Delhi on July 19. Seeking interim protection from arrest, the defence said the accused was willing to join the investigation.

The prosecution opposed the plea, asserting that Rs 30 crore is yet to be recovered. It alleged that Saraswati withdrew Rs 60 lakh after absconding and must be taken to several locations across states to trace the misappropriated money. Prosecutors insisted that granting interim protection would cripple recovery efforts.

They said that the irregularities came to light only after chartered accountant PA Murli, appointed by the institution, flagged the discrepancies.

The police also told the court that Saraswati falsely projected himself as a member of the Prime Minister’s Advisory Council and a UN representative, underscoring what they described as a deliberate pattern of deception.