ED imposes ₹51.72 crore and ₹10 crore penalties on Amnesty India, Aakar Patel

On Friday, the Enforcement Directorate issued a show-cause notice to Amnesty India International Pvt. In a press release, it stated, “ED, had initiated investigation under FEMA on the basis of information that Amnesty International, UK had been remitting huge amount of foreign contribution through its Indian entities following FDI route, in order to evade Foreign Contribution Regulation Act to expand its NGO activities in India, despite of denial of prior registration or permissions to Amnesty International India Foundation Trust and other trusts under FCRA by Ministry of Home Affairs, Govt. of India.” FEMA penalty of Rs 51.72 cr and Rs 10 cr imposed against Amnesty India International Pvt Ltd, its former head Aakar Patel respectively: ED — Press Trust of India July 8, 2022 The Enforcement Directorate stated that between November 2013 and June 2018, Amnesty India International received foreign funds under the Head of ‘Business/Management Consultancy’ and ‘Public Relation Services.’ These donations were described as foreign remittances received for export to services to circumvent FCRA guidelines. ED further emphasised, “However, AIIPL has been involved in many activities which are not relevant to their declared commercial business, and circumventing model has been applied by them to route the foreign funds in the guise of business activities to escape FCRA scrutiny.” “Consequently, it is held that the funds that have arrived in the hands of AIIPL through inward remittances to the tune of Rs 51,72,78,111.87 is nothing but the fund lent by Amnesty International to AIIPL to ensure its objectives in the territorial jurisdiction of India, which is not accordance with the provisions of Regulation 3 of Foreign Exchange Management Regulations, 2000,” the central agency concluded. ED had found that after the cancellation of the FCRA license by the Indian government, Amnesty International India Foundation Trust and other Amnesty entities adopted ‘new methods’ to receive money from abroad.