The Enforcement Directorate (ED) has adjudicated that Amnesty India International and its Chief Operating Officer (CEO) Aakar Patel acted in contravention of the Foreign Exchange Management Act (FEMA), and imposed a penalty of Rs51.72 crore and Rs10 crore respectively. The authority has also issued a show cause notice to both for violating The Foreign Exchange Management Act (FEMA). The alleged FEMA contravention is related to the borrowing and lending regulations to the tune of Rs 51.72 crore for rendering civil society activities in the country by getting remittances from its parent body, Amnesty International UK.
“The Show Cause Notice (SCN) issued by ED had charged that during the period between November, 2013 and June 2018, remittance which was received by Amnesty India International and claimed as receipt for Business and Management Consultancy and Public Relation Services for export of services to foreign beneficiary is nothing but amount borrowed from overseas remitter, thereby violating the FEMA provisions,” said the ED in a statement. ED's investigation is based on an FIR registered by CBI in 2019 against Amnesty India International Private Limited for violations under FCRA, 2010. It was stated that AIIPL was granted permission under FCR in FY 2011-12 for receiving foreign contributions. However, it was cancelled later. The ED alleged that Amnesty India used commercial methods like FDI, service contact and others through automatic route and received Rs 36 crore remittance from UK-based entities in the form of FDI without MHA's approval.
Following the freezing of its bank accounts in September 2020, Amnesty International had announced that it was stopping its operations in India. On October 25, 2018, the ED had conducted search and seizure at its office, allegedly on the basis of a search warrant.
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