NEW DELHI: The Economic Offences Wing (EOW) of the Delhi Police has registered an FIR against a Bengaluru-based company for allegedly siphoning off government funds intended to support startups.
The company, HPPL Foundation, posed as an accelerator connecting startups with government schemes. It allegedly received over Rs 3 crore under the pretext of supporting startup initiatives but failed to disburse the funds to the intended recipients.
According to police officials, the Ministry of Electronics and Information Technology (MeitY) filed a complaint through its authorised representative. The complaint stated that HPPL had approached the ministry to act as an accelerator under the Startup Accelerator of MeitY for Product Innovation, Development, and Growth (SAMRIDH) programme.
Following due evaluation, MeitY signed a Memorandum of Understanding (MoU) and an equity management service agreement with the foundation.
Joint Commissioner of Police (EOW) Keshav Ram Chaurasia confirmed that an FIR has been registered and the matter is under investigation.
Police sources said the foundation received Rs 3.2 crore between January and March 2024, to be disbursed among eight selected startups. In April, HPPL informed the MeitY Startup Hub (MSH) that it had transferred the funds. However, a subsequent inquiry by MSH in June revealed that most of the startups had not received any funds.
Further allegations suggest HPPL not only withheld the funds but also demanded money from startups under the guise of facilitating grants. MeitY had already paid a separate service charge to the company for managing the fund disbursal.
To cover up the fraud, HPPL allegedly submitted forged documents as proof of disbursement. The foundation did not respond to queries from IANS.
The FIR states that HPPL appeared to have acted with fraudulent intent from the outset, misleading the ministry to secure funds under false pretences.
The FIR also notes that the MeitY Startup Hub was established to empower the tech startup ecosystem by bringing together startups, incubators, mentors, and other stakeholders to create a robust and collaborative platform to foster innovation and growth.