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FEMA Violations: ED Imposes Rs 51 Cr Penalty On Amnesty, Rs 10 Cr On Aakar Patel

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NEW DELHI: The Adjudicating Authority of the Enforcement Directorate (ED) on Friday said that it has imposed a penalty of Rs 51.72 crore on Amnesty India International Pvt Ltd, a human rights watchdog, and Rs 10 crore on its former CEO Aakar Patel for contravention of the provisions of Foreign Exchange Management Act, (FEMA).

In a statement, the ED said that the Adjudicating Authority of the ED adjudicated a Show Cause Notice issued to Amnesty India International Pvt. Ltd. (AIIPL) and Patel for contravention of the provisions of FEMA and imposed a penalty to the tune of Rs 51.72 crore and Rs 10 crore respectively.

It further said that the financial probe agency registered a case under FEMA on the basis of information that Amnesty International, UK had been remitting a huge amount of foreign contribution through its Indian entities (non-FCRA companies) following the FDI route. This is done to evade Foreign Contribution Regulation Act (FCRA) to expand its NGO activities in India, despite the denial of prior registration or permissions to Amnesty International India Foundation Trust (AIIFT) and other trusts under FCRA by the Union ministry of home affairs.

It said that the SCN issued by ED had charged that during the period between November 2013 and June 2018, remittance which was received by AIIPL and claimed as a receipt for business or management consultancy and public relation services for export of services to the foreign beneficiary is nothing but the amount borrowed from overseas remitter, thereby violating the FEMA provisions.

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