CBI begins probe into foreign fund diversion by NGO

The probe came after a report by the Foreigner Division of the Ministry of Home Affair that was submitted in May 2017. The delay in receiving permission for prosecution from State government is cited as the reason for delay in registering the case.

The MHA report says that though CBV filed account of foreign contribution stating the nature of association as economics, educational and social, part of the money was used for religious activities. It has also declared that its long term objective is ‘converting poor children into fulfilled Christian adults’ thus indulging in religious activities, including conversion to Christianity, the report said.

In 2015, the Income Tax department had raised a Rs 87.70-crore tax demand on CBV for alleged violation of Section 8(1)(a) of FCRA after its investigation wing found that it had diverted funds received from US-based Compassion International to 300 other organisations.

After this, a new entity Adhane Management Consultants Pvt Ltd was formed to mislead the authorities, it said, pointing out that the CEO of both the entities were the same and shared the same registered address in Anna Nagar East.

On an average, the organisation used to receive Rs 100 crore annually, but used only 10 per cent of it for the purpose it was meant for and diverted the rest, officials had said. The rules prohibit transfer of foreign contribution to non-FCRA account unless that, too, has been granted the certificate or obtained prior permission under the Act.

Similarly, Bentinck higher secondary school received Rs 1 crore violating Foreign Contribution Regulation Act norms, the MHA report added.