NEW DELHI: The Central Bureau of Investigation (CBI) on Friday raided the Bengaluru and New Delhi offices of Amnesty International India Pvt Ltd over alleged irregularities in foreign funding in connection with violation of Foreign Contribution Regulation Act (FCRA).
The agency registered a case on November 5 on a complaint received from Ministry of Home Affairs(Govt. of India) against M/s. Amnesty International India Pvt. Ltd (AIIPL); M/s Indians For Amnesty International Trust (IAIT); M/s Amnesty International India Foundation Trust (AIIFT); M/s Amnesty International South Asia Foundation (AISAF) & Unknown others
It is alleged that the provision of the Foreign Contribution (Regulation) Act, 2010 and Indian Penal Code were contravened by the aforesaid entities by receiving foreign contributions from M/s Amnesty International U.K through AIIPL even though prior registration or permissions were denied to M/s Amnesty International India Foundation Trust (AIIFT) and other Trusts under FCRA, CBI sources said.
Entrusting the case to CBI, MHA in its order had said that in order to evade FCRA, Amnesty (UK) remitted Rs 10 crore to Amnesty’s Indian entities classified as FDI, without MHA’s approval.
It further said “another Rs 26 crore has been remitted to Amnesty (India) primarily from UK based entities without MHA’s approval. Amnesty has made several attempts to obtain prior permission or registration under FCRA. The same was not granted. In reaction to repeated denials, Amnesty used commercial methods to evade FCRA”
The order further read “Amnesty (India) received funds for three purposes namely Service Contract, Advance income and FDI through automatic route which are mainly used by commercial entities. Of the total 36 crores of foreign funds received, 10 crores remitted as FDI, Rs 26 crore as payment for consultancy services of which Rs 3.5 crore was shown as advance income in 2016-17. Amnesty International (UK) invested Rs 10 crore in Amnesty International India on September 24, 2015 and this was classified as “Compulsory Convertible Debentures (CCD) and shown in balance sheet and IT returns as long term borrowings. This amount was immediately placed in FDs”.
The MHA order further said “inspection of books of Amnesty International revealed that the Association had indulged in such activities which were not commensurate to the activities of a for-profit company but would prima facie amount to circumvent the provisions of FCRA”.
The MHA order also mentioned that the interim report prepared by Enforcement Directorate (ED) against Amnesty intimated that the Civil Society Work (charitable activities) are being carried out by Amnesty International that the Civil Society Work (charitable activities) are being carried out by Amnesty International (India) “on huge profit on commercial lines and he funds for these activities are obtained in garb of remittances against export of services.”
It adds “in the instant case, FDI to the tune of Rs 10 crore has been used to create an overdraft facility to the tune of Rs 14.25 crore for M/s Indians for Amnesty International Trust (IAIT) by keeping Rs 10 crore FD as collateral. The interim report f ED also revealed that Amnesty had indulged in such activities which were not commensurate to the activities of a for-profit company but would prima facie amount to circumvent the provisions of the FCRA”.
Handing over the case to CBI, MHA said “if during the course of the investigation, it comes to the notice of the CBI that violations of other specific statutes like The Income Tax Act, the Prevention of Money Laundering Act, have also taken place, CBI may send suitable references to the competent authorities administering those relevant Acts for appropriate follow up action”.
CBI’s raids come a year after the Enforcement Directorate (ED) raided two premises of Amnesty International over alleged violation of India’s foreign exchange laws.
In a press statement, Amnesty said “over the past year, a pattern of harassment has emerged every time Amnesty India stands up and speaks out against human rights violations in India.”
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