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After FEMA penalty, ED files money-laundering chargesheet against Amnesty India, linked organisations

Press Trust of india by Press Trust of india
July 9, 2022
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ED arrests man under PMLA in Rs 750 cr bank loan fraud
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New Delhi:  A day after the ED issued a FEMA show-cause notice of Rs 61.72 crore against Amnesty India and its former head Aakar Patel, the agency on Saturday said it has filed a money-laundering chargesheet against the organisation and a few other entities.

A prosecution complaint has been filed before the court of Principal City Civil and Sessions Judge, Bengaluru city against Amnesty International India Private Limited (AIIPL), Indians for Amnesty International Trust (IAIT) and others.

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The court has taken congnisance of the chargesheet filed under the criminal sections of the Prevention of Money Laundering Act (PMLA) and issued summonses to the accused, the Enforcement Directorate (ED) said in a statement.

The money-laundering case was filed by the ED after taking cognisance of a CBI FIR against the accused, whom the latter agency had booked for alleged violations of the Foreign Contribution (Regulation) Act (FCRA), 2010 and under section 120B (criminal conspiracy) of the Indian Penal Code (IPC).

The ED said during “2011-12, Amnesty International India Foundation Trust (AIIFT) had been granted permission under the FCRA, 2010 for receiving foreign contribution from Amnesty International, UK”.

“The permission/registration has been subsequently revoked to this entity on the basis of adverse inputs received,” it added.

Subsequently, two new entities — AIIPL and IAIT — were formed in 2013-14 and 2012-13 respectively to escape the FCRA route and these entities received foreign exchange “in the guise of” service export and FDI, the federal agency said.

It said as the FCRA licence of AIIFT was “revoked” by the Centre, a “new method” was adopted by Amnesty entities to receive money from abroad as Amnesty International, UK sent Rs 51.72 crore to AIIPL in the guise of export of services and Foreign Direct Investment (FDI).

There was no documentary proof for export proceeds or advances received for export of services to Amnesty International, UK such as invoices and copies of the agreement between AIIPL and Amnesty International, UK and the same has not been furnished by AIIPL to the authorised dealer (AD) banks, the ED alleged.

“Amnesty International India Pvt Ltd and others have committed scheduled offence by claiming to be carrying out ‘civil Society work’, however receiving forex in a profit-making company, thereby mis-utilising the FDI, proved by absence of any details/documents relating to exports made and layering of remittances received by AIIPL, a company into IAIT, a charitable trust.

“In this case, both the entities have acquired proceeds of crime and layered the same in the form of various movable properties,” the agency said.

The show-cause notice issued on Friday under the civil law of the Foreign Exchange Management Act (FEMA) penalised AIIPL for Rs 51.72 crore and Patel for Rs 10 crore.

Patel had said they will challenge the ED action undertaken under FEMA in court.

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