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The Enforcement Directorate has filed a prosecution complaint (charge sheet) against Amnesty International India Private Ltd. (AIIPL), Indians for Amnesty International Trust (IAIT) and others in a money laundering case.
The move comes after the Adjudicating Authority of the ED imposed penalties of Rs. 51.72 crore on AIIPL and Rs. 10 crore on its then chief executive officer, Aakar Patel, in connection with a show cause notice issued under the Foreign Exchange Management Act in 2019.
The money laundering case is based on the first information report registered by the Central Bureau of Investigation against the accused entities for alleged violation of the Foreign Contribution (Regulation) Act (FCRA).
According to the ED, in 2011-12, Amnesty International India Foundation Trust (AIIFT) had been granted permission under the FCRA for receiving foreign contribution from Amnesty International-United Kingdom. However, the permission was subsequently revoked on the basis of adverse inputs received from security agencies.
Then, two new entities — IAIT and AIIPL — were formed in 2013-14 and 2012-13 allegedly to escape the FCRA route and receive overseas funds in the guise of service export and Foreign Direct Investment (FDI). Amnesty International-U.K. sent Rs. 51.72 crore to AIIPL on the pretext of export of services and FDI.
The agency alleged that there was no documentary evidence for the export of services supposedly extended to Amnesty International-U.K. No proof was submitted by AIIPL to the audhorised dealer banks in this regard.
“Amnesty International India Private Limited and others have committed scheduled offence by claiming to be carrying out ‘civil society work’, but receiving forexin a profit-making company, thereby misutilising the FDI,” said an official, adding that remittances received by AIIPL were layered into IAIT, which was a charitable trust.
The ED had earlier attached movable properties worth Rs. 19.54 crore and the attachment orders have been confirmed by the Prevention of Money Laundering Act Adjudicating Authority. “In light of above, a prosecution complaint has been filed under the PMLA against Amnesty International India Private Limited and others in the court of Principal City Civil and Sessions Judge, Bengaluru City, Bengaluru,” the official said.
Amnesty India on Saturday tweeted: “We reiterate that the allegations of @dir_ed, a financial investigation agency under @FinMinIndia, that Amnesty International India was involved in ‘money laundering’, are patently untrue.”
