The Enforcement Directorate sleuths raided the office of Amnesty International in Bengaluru on Thursday for violations of the Foreign Exchange Management Act (FEMA). The raids at the human rights organisation started at 2 pm. Amnesty International has denied any ill-doings.
The ED is looking to check whether entities based in the UK have infused funds into Amnesty (India) allegedly through commercial channels in violation of FEMA rules.
Two years ago the security agencies had reported that Amnesty International (UK) has been remitting huge amount of foreign contribution through its four Indian entities -- non-FCRA companies and trusts -- through FDI route, in order to evade FCRA, and to expand its NGO activities in India in violation of the provisions of FCRA, 2010.
Indian entities for Amnesty International have received funds for three purposes namely service contract, advance income and FDI through automatic route which mainly used by commercial entities.
Of the total Rs 30 crore foreign funds received Rs 10 crore are remitted as FDI and Rs 26 crore as payment for consultancy of which Rs 3.5 crore was shown as advance income during 2016-2017.
Amnesty International (UK) invested Rs 10 crore in Amnesty International Indian Private Limited on September 24, 2015. This was classified as compulsory convertible debentures and shown on its balance sheet and Income tax returns as long-term borrowings. This amount was immediately placed in Fixed Deposit
"In this next month, another Indian entity, Indians for Amnesty International Trust had established on overdraft facility for Rs 14.25 crore keeping the Rs 10 crore FD as collateral. The overdraft facility was used Indians for Amnesty International trust for Amnesty India's NGO activities including salary and administrative and operational expenses," sources in the agency stated.
The remaining Rs 26 crore was received in two other banks accounts of Amnesty International India as consultancy services.
"It is also learnt that Amnesty India has begun receiving large amounts of domestic funding, sourced high net worth Investors more than Rs 1 crore each and crowdfunding, wherein small amounts Rs 500 and Rs 200 are donated to Amnesty by individuals through multiple gateways," the sources said.
The agency is collecting their funding documents and other materials for violation FEMA
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