After FEMA penalty notice, ED files charge sheet under PMLA against Amnesty India, others

New Delhi, July 9

A day after issuing a notice under Foreign Exchange Management Act (FEMA) imposing a penalty of Rs 61.72 crore against Amnesty India and its former head Aakar Patel, the Enforcement Directorate on Saturday said it has filed a charge sheet under provisions of Prevention of Money laundering Act (PMLA) against the NGO and a few other entities.

The ED in an official statement said, 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.

The court has taken cognisance of the charge sheet filed under the criminal sections of the PMLA and has issued summonses to the accused, it added.

The PMLA case was filed by the ED after taking cognisance of a CBI FIR against the accused persons and entities, whom it 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 contributions from Amnesty International, UK”.

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

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 ED alleged.

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 and 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 has alleged in its statement.

“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”.

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