The Karnataka High Court on Monday stayed the money laundering case initiated by the Enforcement Directorate (ED) in 2022 against the now-defunct Amnesty International India Pvt Ltd (AIIPL) and its former director Aakar Patel..Justice Hemant Chandangoudar passed the interim order on a plea by Patel and AIIPL to quash the May 2022 complaint filed by the ED under the Prevention of Money Laundering Act, 2002 (PMLA) against Amnesty International India, the Indian unit of international human rights body Amnesty International.The ED had initiated the case based on a 2019 case registered by the Central Bureau of Investigation (CBI). The Court yesterday noted that another Bench of the High Court had already extended similar interim relief to former Amnesty International India CEO, G Ananthapadmanabhan.The allegations levelled against AIIPL and Aakar Patel are similar, the Court was told. "Interim order as prayed for (stay of ED action), in so far it relates to the petitioners - accused Nos.1 and 4 (AIIPL and Aakar Patel) are concerned, till next date of hearing," the Court proceeded to order. .The case filed by the ED against Amnesty International India and its representatives involves allegations that it flouted Foreign Direct Investment (FDI) norms in receiving money from its UK-counterpart (Amnesty International), after its Foreign Contribution (Regulation) Act (FCRA) licence was cancelled. A press note issued by the ED in 2022 noted that Amnesty International India held an FCRA license around 2011-2012 to receive foreign contributions for its non-profit operations. However, this license was cancelled over certain "adverse inputs." Following this, the ED claimed that two new entities, namely AIIPL and Indians Amnesty International Trust (IAIT), were formed in 2013-14 and 2012-13 respectively to escape the FCRA route and receive forex under the guise of service export and FDI.₹51.72 crores was sent to AIIPL by Amnesty International UK under the guise of it being for the export of services and as FDI, the ED further alleged, although there was no documentary proof (invoices, agreements) of any such export. The ED, therefore, accused Amnesty International India of having committed money laundering by claiming to carry out “civil society work”, but receiving forex by flouting FDI norms and through a route meant for profit-making activities.Notably, Amnesty International India halted its operations 2020 after its bank accounts were frozen. The NGO claimed that it has been facing a continuing smear campaign in India since around 2018 on account of its reports on human rights violations in India.The trial in the 2022 ED case is pending before a local court in Bengaluru. However, the organisation has now approached the High Court to quash the case altogether. The matter is likely to be heard next in June after the upcoming court holidays. .Special Public Prosecutor S Prasanna Kumar represented the ED during yesterday's hearing.Amnesty International India and Aakar Patel were represented by Advocate Urmila Pullat..[Read Order]
The Karnataka High Court on Monday stayed the money laundering case initiated by the Enforcement Directorate (ED) in 2022 against the now-defunct Amnesty International India Pvt Ltd (AIIPL) and its former director Aakar Patel..Justice Hemant Chandangoudar passed the interim order on a plea by Patel and AIIPL to quash the May 2022 complaint filed by the ED under the Prevention of Money Laundering Act, 2002 (PMLA) against Amnesty International India, the Indian unit of international human rights body Amnesty International.The ED had initiated the case based on a 2019 case registered by the Central Bureau of Investigation (CBI). The Court yesterday noted that another Bench of the High Court had already extended similar interim relief to former Amnesty International India CEO, G Ananthapadmanabhan.The allegations levelled against AIIPL and Aakar Patel are similar, the Court was told. "Interim order as prayed for (stay of ED action), in so far it relates to the petitioners - accused Nos.1 and 4 (AIIPL and Aakar Patel) are concerned, till next date of hearing," the Court proceeded to order. .The case filed by the ED against Amnesty International India and its representatives involves allegations that it flouted Foreign Direct Investment (FDI) norms in receiving money from its UK-counterpart (Amnesty International), after its Foreign Contribution (Regulation) Act (FCRA) licence was cancelled. A press note issued by the ED in 2022 noted that Amnesty International India held an FCRA license around 2011-2012 to receive foreign contributions for its non-profit operations. However, this license was cancelled over certain "adverse inputs." Following this, the ED claimed that two new entities, namely AIIPL and Indians Amnesty International Trust (IAIT), were formed in 2013-14 and 2012-13 respectively to escape the FCRA route and receive forex under the guise of service export and FDI.₹51.72 crores was sent to AIIPL by Amnesty International UK under the guise of it being for the export of services and as FDI, the ED further alleged, although there was no documentary proof (invoices, agreements) of any such export. The ED, therefore, accused Amnesty International India of having committed money laundering by claiming to carry out “civil society work”, but receiving forex by flouting FDI norms and through a route meant for profit-making activities.Notably, Amnesty International India halted its operations 2020 after its bank accounts were frozen. The NGO claimed that it has been facing a continuing smear campaign in India since around 2018 on account of its reports on human rights violations in India.The trial in the 2022 ED case is pending before a local court in Bengaluru. However, the organisation has now approached the High Court to quash the case altogether. The matter is likely to be heard next in June after the upcoming court holidays. .Special Public Prosecutor S Prasanna Kumar represented the ED during yesterday's hearing.Amnesty International India and Aakar Patel were represented by Advocate Urmila Pullat..[Read Order]
