ED Imposes Rs 51.72 Crore Fine On Amnesty India, Rs 10 Crore On Ex-CEO Aakar Patel

ED said the penalty notice was issued as the funds received by Amnesty 'violated' Foreign Exchange Management Act (FEMA) provisions.

Former Amnesty India CEO Aakar Patel

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A penalty of Rs 51.72 crore and Rs 10 crore has been imposed on Amnesty India International Pvt. Ltd (AIIPL) and its former CEO Aakar Patel respectively for contravention of the foreign exchange law, the ED said on Friday.

"The Adjudicating Authority of ED has adjudicated an SCN issued to M/s Amnesty India International Pvt. Ltd. (AIIPL) and its CEO Aakar Patel for contravention of the provisions of FEMA and imposed a penalty of ₹51.72 crores and ₹10 crores respectively," Enforcement Directorate said in a statement.

ED said the action was taken against Amnesty India and Patel after it was found that Amnesty International, UK, had been remitting "huge amount" of foreign contribution through its Indian entities (non-FCRA companies) following FDI route, PTI reported.

This was done to evade Foreign Contribution Regulation Act (FCRA) to expand its NGO activities in India, the ED said. 

"This was despite denial of prior registration or permissions to Amnesty International India Foundation Trust (AIIFT) and other trusts under FCRA by the Ministry of Home Affairs," the statement further said

ED said the penalty notice was issued as the funds received by Amnesty "violated" Foreign Exchange Management Act (FEMA) provisions.

According to the notice, between November 2013 and June 2018, remittance received by Amnesty International India and claimed as receipt for business consultancy and PR services is nothing but borrowed from overseas contributor, thereby a clear violation of FEMA.

"The funds that have arrived to the hands of AIIPL through inward remittances to the tune of Rs 51.72 crore is nothing but the fund lent by Amnesty International to AIIPL to ensure its objectives in the territorial jurisdiction of India, which is violation of Regulation 3 of Foreign Exchange Management (borrowing and lending in Foreign Exchange) Regulations," the ED statement said.

(With PTI inputs)