INDIRA JAISING FACES CBI PROBE FOR FUND MISUSE
Monday, 21 March 2016 | Rakesh K Singh | New Delhi
The Centre is likely to order a Central Bureau of Investigation (CBI) probe into the fund misuse by an NGO, Lawyers Collective, run by former Additional Solicitor General (ASG) Indira Jaising. The Union Home Ministry has already served a notice on the NGO for allegedly receiving foreign funds of over Rs11 crore when she held the post of ASG between 2009 and 2012.
In its notice, the Ministry said Jaisingh received foreign funds while holding a Government post, which is violation of the Foreign Contribution Regulation Act, 2010 (FCRA). Sources said that while no decision has been taken on the nature of probe to be ordered against the former ASG, there is enough evidence to engage the CBI in this matter.
They pointed out several instances of FCRA violations were noticed in the account books of the Mumbai-based NGO during a recent scrutiny of documents carried out in January. On the receipt of a complaint from one Raj Kumar Sharma on the misutilisation of foreign contribution by Lawyers Collective, the Ministry inspected the books of account of the NGO for the period from 2009-10 to 2014-15.
In contravention of the FCRA norms, the NGO allegedly participated in political activities and allegedly diverted and misutilised foreign contribution. The enquiry also revealed that significant amount of foreign contributions were spent on air travel, boarding and lodging, local travel of trustee Anand Grover, husband of Indira Jaising, and various contractual employees and representatives from different parts of the country for drafting legislations, dharnas and advocacy with MPs.
At a seminar on “Future Plan-2010” and in the Annual Meeting of the Board of Trustees of the association held on August 28, 2010, Lawyers Collective decided to draft legislation on the HIV/AIDS Bill and spent money for Advocacy with Members of Parliament and Media. HIV/AIDS however does not come under the aims/objectives of the NGO. An amount of Rs88,978 was paid to Delhi Network of Positive People on October 21, 2009 after entering into an agreement for the arrangement of up to 250 people at the rate of Rs200 per person to hold Dharna for HIV/AIDS Bill outside office of the Law Ministry.
The association too organised rallies against Free Trade Agreement. To hold “paid” dharnas by utilisation of foreign contribution is a violation of Section 8 of FCRA 2010, sources said.
Foreign Currency worth nearly Rs3 crore was received by Lawyers Collective for purposes other than the stated Objectives of Association filed with the Registrar like women empowerment, is a violation of Section 8 of FCRA, 2010, the enquiry has revealed.
Likewise, foreign contribution worth nearly Rs12.5 crore was received by Lawyers Collective for the purpose other than its stated objectives i.e. HIV/AIDS awareness. Receiving funds for activities not listed as objectives is also a violation of FCRA.
The enquiry has also revealed that the NGO acted as a conduit for receipt and transfer of foreign contribution meant for UNSR (United Nations Special Rapporteur). During 2008 to 2014, one of the foreign donors donated $95,000, $97,000, $93,896 and $89,599 to the NGO, specifically to assist Anand Grover to carry on his work as UN Special Rapporteur.
Grover availed the foreign contribution for various purposes, including visit to foreign countries (though as UNSR he is entitled for travelling expenses per diem). This was not an activity listed in the Objectives of the Association of the NGO and therefore the Association violated the provisions of Section 7 of FCRA, 2010 (read with Rule 24 of FCRR, 2011) by working as a conduit to receive foreign contribution on behalf of Anand Grover and transferring the same to him, the sources said.
Anand Grover has also violated the provisions of Section 11 of the FCRA, 2010 by accepting and utilising the foreign contribution without obtaining registration or prior permission of the Centre. Grover also used the foreign contribution for personal benefits and spent it outside India, thereby violating Section 8 of the FCRA, 2010.
Grover also appeared in Novartis case in the Supreme Court by spending foreign contribution, which was clearly not meant for that purpose. Funds were misappropriated to meet such purposes. In one instance, the air ticket of Indira Jaising was also booked out of foreign contribution received for Novartis Case, along with him, though she was not officially attached with the case (2011) nor it was any Association-related activity.
Receipt of foreign contribution by her while functioning as Public Servant (in her capacity as ASG from July 2009 to May 5, 2014) is also violation of FCRA norms. She received remuneration of Rs 96.60 lakh from Lawyers Collective out of foreign contribution and as an ASG travelled to foreign countries like Nepal and USA. The travelling expenses were borne by Lawyers Collective from foreign contribution without prior approval from the Union Home Ministry. The ASG being a Public Servant of a high stature who used to handle sensitive matters, thus receipt of foreign contribution violated the thrust of the FCRA, 2010 and consequently Section 3 and Section 11 thereof by not seeking clearances from the Centre for receiving foreign contribution as remuneration from the NGO.
Receipt of foreign contribution in non-designated foreign contribution account is yet another violation of the FCRA. The NGO has received foreign contribution from donors directly in its Utilization account instead of designated bank account for foreign contribution thereby violating provisions contained in Section 17 and Section 18 of FCRA, 2010 and Rule 9 (1)(e) of FCRR, 2011, the sources said.
The receipt of foreign contribution amounting to Rs 29.33 lakh, Rs 16.18 lakh and Rs 7.54 lakh during the year 2013-14, 2014-15 and 2015-16 which was credited to the Utilization bank account instead of foreign currency designated bank account has not been reflected in FC-6 annual returns, in violation of provisions contained in Section 18 of the FCRA, 2010, Rule 17 of Foreign Contribution (Regulation) Rules, 2011 and is covered under Section 33 of the FCRA, 2010 for suppression of facts.
Discrepancy between the return filed with Union Home Ministry and that with Income Tax authorities - a comparative analysis of the foreign contribution received during FY 2009-10 to FY 2011-12 by Lawyers Collective as per Foreign Contribution return filed with MHA and the return filed with Income Tax authorities revealed discrepancies of about Rs 3 crores.
Non-reporting of opening of utilisation account is also a violation of Section 18 of FCRA, 2010 and Rule 9(1) (e) of FCRR, 2011. Frequent inter-transfer of Foreign Contribution from one utilization account to another utilization account is yet another contravention of the provisions contained in Section 17 of FCRA, 2010 and Rule 9(1) (e) of FCRR, 2011.Likewise, transfer of Foreign Contribution from FC Designated bank account and FC Utilization bank accounts to local fund accounts and transfer of Local Fund into FC account, leading to mixing of foreign contribution with local/ domestic funds is also a violation of Section 17 of FCRA, 2010 and Rule 9(1)(e) of FCRR, 2011.
Foreign Contribution was spent for air travel and other expenses for contractual employees/workers of other organisations, foreigners and Anand Grover to attend Conferences in foreign countries, a clear violation of Section 7 of FCRA, 2010, the sources added.
Monday, 21 March 2016 | Rakesh K Singh | New Delhi
The Centre is likely to order a Central Bureau of Investigation (CBI) probe into the fund misuse by an NGO, Lawyers Collective, run by former Additional Solicitor General (ASG) Indira Jaising. The Union Home Ministry has already served a notice on the NGO for allegedly receiving foreign funds of over Rs11 crore when she held the post of ASG between 2009 and 2012.
In its notice, the Ministry said Jaisingh received foreign funds while holding a Government post, which is violation of the Foreign Contribution Regulation Act, 2010 (FCRA). Sources said that while no decision has been taken on the nature of probe to be ordered against the former ASG, there is enough evidence to engage the CBI in this matter.
They pointed out several instances of FCRA violations were noticed in the account books of the Mumbai-based NGO during a recent scrutiny of documents carried out in January. On the receipt of a complaint from one Raj Kumar Sharma on the misutilisation of foreign contribution by Lawyers Collective, the Ministry inspected the books of account of the NGO for the period from 2009-10 to 2014-15.
In contravention of the FCRA norms, the NGO allegedly participated in political activities and allegedly diverted and misutilised foreign contribution. The enquiry also revealed that significant amount of foreign contributions were spent on air travel, boarding and lodging, local travel of trustee Anand Grover, husband of Indira Jaising, and various contractual employees and representatives from different parts of the country for drafting legislations, dharnas and advocacy with MPs.
At a seminar on “Future Plan-2010” and in the Annual Meeting of the Board of Trustees of the association held on August 28, 2010, Lawyers Collective decided to draft legislation on the HIV/AIDS Bill and spent money for Advocacy with Members of Parliament and Media. HIV/AIDS however does not come under the aims/objectives of the NGO. An amount of Rs88,978 was paid to Delhi Network of Positive People on October 21, 2009 after entering into an agreement for the arrangement of up to 250 people at the rate of Rs200 per person to hold Dharna for HIV/AIDS Bill outside office of the Law Ministry.
The association too organised rallies against Free Trade Agreement. To hold “paid” dharnas by utilisation of foreign contribution is a violation of Section 8 of FCRA 2010, sources said.
Foreign Currency worth nearly Rs3 crore was received by Lawyers Collective for purposes other than the stated Objectives of Association filed with the Registrar like women empowerment, is a violation of Section 8 of FCRA, 2010, the enquiry has revealed.
Likewise, foreign contribution worth nearly Rs12.5 crore was received by Lawyers Collective for the purpose other than its stated objectives i.e. HIV/AIDS awareness. Receiving funds for activities not listed as objectives is also a violation of FCRA.
The enquiry has also revealed that the NGO acted as a conduit for receipt and transfer of foreign contribution meant for UNSR (United Nations Special Rapporteur). During 2008 to 2014, one of the foreign donors donated $95,000, $97,000, $93,896 and $89,599 to the NGO, specifically to assist Anand Grover to carry on his work as UN Special Rapporteur.
Grover availed the foreign contribution for various purposes, including visit to foreign countries (though as UNSR he is entitled for travelling expenses per diem). This was not an activity listed in the Objectives of the Association of the NGO and therefore the Association violated the provisions of Section 7 of FCRA, 2010 (read with Rule 24 of FCRR, 2011) by working as a conduit to receive foreign contribution on behalf of Anand Grover and transferring the same to him, the sources said.
Anand Grover has also violated the provisions of Section 11 of the FCRA, 2010 by accepting and utilising the foreign contribution without obtaining registration or prior permission of the Centre. Grover also used the foreign contribution for personal benefits and spent it outside India, thereby violating Section 8 of the FCRA, 2010.
Grover also appeared in Novartis case in the Supreme Court by spending foreign contribution, which was clearly not meant for that purpose. Funds were misappropriated to meet such purposes. In one instance, the air ticket of Indira Jaising was also booked out of foreign contribution received for Novartis Case, along with him, though she was not officially attached with the case (2011) nor it was any Association-related activity.
Receipt of foreign contribution by her while functioning as Public Servant (in her capacity as ASG from July 2009 to May 5, 2014) is also violation of FCRA norms. She received remuneration of Rs 96.60 lakh from Lawyers Collective out of foreign contribution and as an ASG travelled to foreign countries like Nepal and USA. The travelling expenses were borne by Lawyers Collective from foreign contribution without prior approval from the Union Home Ministry. The ASG being a Public Servant of a high stature who used to handle sensitive matters, thus receipt of foreign contribution violated the thrust of the FCRA, 2010 and consequently Section 3 and Section 11 thereof by not seeking clearances from the Centre for receiving foreign contribution as remuneration from the NGO.
Receipt of foreign contribution in non-designated foreign contribution account is yet another violation of the FCRA. The NGO has received foreign contribution from donors directly in its Utilization account instead of designated bank account for foreign contribution thereby violating provisions contained in Section 17 and Section 18 of FCRA, 2010 and Rule 9 (1)(e) of FCRR, 2011, the sources said.
The receipt of foreign contribution amounting to Rs 29.33 lakh, Rs 16.18 lakh and Rs 7.54 lakh during the year 2013-14, 2014-15 and 2015-16 which was credited to the Utilization bank account instead of foreign currency designated bank account has not been reflected in FC-6 annual returns, in violation of provisions contained in Section 18 of the FCRA, 2010, Rule 17 of Foreign Contribution (Regulation) Rules, 2011 and is covered under Section 33 of the FCRA, 2010 for suppression of facts.
Discrepancy between the return filed with Union Home Ministry and that with Income Tax authorities - a comparative analysis of the foreign contribution received during FY 2009-10 to FY 2011-12 by Lawyers Collective as per Foreign Contribution return filed with MHA and the return filed with Income Tax authorities revealed discrepancies of about Rs 3 crores.
Non-reporting of opening of utilisation account is also a violation of Section 18 of FCRA, 2010 and Rule 9(1) (e) of FCRR, 2011. Frequent inter-transfer of Foreign Contribution from one utilization account to another utilization account is yet another contravention of the provisions contained in Section 17 of FCRA, 2010 and Rule 9(1) (e) of FCRR, 2011.Likewise, transfer of Foreign Contribution from FC Designated bank account and FC Utilization bank accounts to local fund accounts and transfer of Local Fund into FC account, leading to mixing of foreign contribution with local/ domestic funds is also a violation of Section 17 of FCRA, 2010 and Rule 9(1)(e) of FCRR, 2011.
Foreign Contribution was spent for air travel and other expenses for contractual employees/workers of other organisations, foreigners and Anand Grover to attend Conferences in foreign countries, a clear violation of Section 7 of FCRA, 2010, the sources added.
Inidna Anand Grover must be very tolerant if he is tolerating this pig mouth IJ.
Source: http://bharatkalyan97.blogspot.in/2016/03/lawyers-collective-with-foreign-funds.html
Source: http://bharatkalyan97.blogspot.in/2016/03/lawyers-collective-with-foreign-funds.html
