India’s Enforcement Directorate (ED) has issued a Show Cause Notice to Amnesty India International Private Limited (AIIPL) and its CEO for violating the country’s Foreign Exchange Management Act, 1999 (FEMA). The authority has also levied a penalty of ₹517.2 million ($6.52m) and ₹100 million ($1.26m), respectively on AIIPL and the CEO.
The ED began its investigation upon receiving information that Amnesty International, UK had been remitting a large amount of foreign contribution through its Indian entities to evade the Foreign Contribution Regulation Act (FCRA). Amnesty’s objective was to expand its NGO activities in India, even though the Indian government has previously denied permissions to Amnesty International India Foundation Trust (AIIFT) and other trusts under FCRA.
The ED has specified that many of AIIPL’s activities are not relevant to its declared commercial business. The authority has further declared that AIIPL has received huge foreign funds under the pretext of business activities which helped it to avoid FCRA scrutiny. As such, both AIIPL and its CEO will have to pay their respective fines.
Source: Enforcement Directorate, India