Kerala Probes Manappat Foundation Over Alleged FCRA Breaches in Punarjani Project
The Kerala government is scrutinizing a Vigilance report alleging that Manappat Foundation violated federal foreign funding rules during a flood relief campaign. Officials are weighing a CBI referral after investigators flagged 1.22 crore rupees in suspicious transactions.
Vigilance Bureau Signals Potential CBI Referral
The Kerala government is currently evaluating a report from the Vigilance and Anti-Corruption Bureau (VACB) that could trigger a Central Bureau of Investigation (CBI) probe into the Manappat Foundation. According to official disclosures on January 5, 2025, the NGO allegedly failed to comply with Rule 19 of the Foreign Contribution (Regulation) Act (FCRA). The investigation centers on the NGO's role in the Punarjani project, a rehabilitation initiative led by Opposition Leader V.D. Satheesan for his Paravoor constituency following the state's devastating floods.
Investigators highlighted approximately 1.22 crore rupees in questionable transactions flowing through the foundation's FCRA and current accounts, as well as the personal accounts of chairperson Ameer Ahammed. The VACB contends that the organization failed to maintain necessary documentation regarding the receipt and expenditure of international endowments. The Home Department is now seeking legal advice to determine if these administrative lapses constitute offenses under the Prevention of Corruption Act (PCA) or the Prevention of Money Laundering Act (PMLA).
Political Dimensions and Evidence
The probe has significant political stakes as the CPI(M) prepares to challenge the Congress leadership over the findings. Evidence submitted to the government includes a 2019 video purportedly showing Mr. Satheesan soliciting donations during a meeting in Birmingham, U.K. While the Opposition Leader confirms his participation in the Birmingham event, he maintains that he never handled the finances personally, delegating all operations to the NGO.
Speaker A.N. Shamseer’s office previously requested clarification on the status of the Punarjani inquiry in early 2024. State authorities are now examining whether a public servant's involvement in organized FCRA violations justifies charges under the PCA. General Education Minister V. Sivankutty has publicly urged the Congress party to acknowledge the seriousness of the VACB findings, though the opposition maintains the investigation is a politically motivated effort.
Foundation Leadership Responds to Allegations
Ameer Ahammed, head of the Manappat Foundation, has expressed a willingness to cooperate with federal investigators to resolve the matter. He asserts that all transactions related to the Punarjani scheme were fully audited and recorded.
- The foundation maintains it holds valid FCRA registration for flood relief work.
- Ahammed argues that the current legal scrutiny may discourage future social welfare initiatives.
- Leadership claims that all requested documents were provided to the VACB during the initial inquiry.
Ahammed maintains that a CBI investigation might be the only way to remove the "permanent cloud of suspicion" currently hanging over the foundation's charitable operations. The state government continues to weigh whether the alleged financial irregularities also fall under the Prohibition of Benami Property Transactions Act.
Source: The Hindu — National
