K’taka HC temporarily stays ED proceedings against Amnesty
Amnesty International India was forced to shut down its operations in 2020 after its bank accounts were frozen by Indian authorities
Bengaluru The Karnataka high court on Monday temporarily stayed all proceedings initiated by the Enforcement Directorate (ED) against Amnesty International India Private Limited (AIIP), the now-defunct Indian unit of the Amnesty International network, and its former director, journalist and author Aakar Patel.
Justice Hemanth Chandangoudar granted the interim relief to AIIP and Patel, directing ED not to take any further steps against them under the Prevention of Money Laundering Act (PMLA) until further orders. The court also issued a notice to ED, seeking its response to the petitions filed by AIIP and Patel seeking quashing of the complaint and all related proceedings.
The case stems from a prosecution complaint, a document similar to a charge sheet, filed by ED in May 2022 against AIIP, Patel, and others, including the organisation’s former CEO G Ananthapadmanabhan, for alleged money laundering.
ED’s case is based on an earlier First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) in 2019 against Amnesty International India Foundation Trust (AIIFT) and others for alleged violations of the Foreign Contribution (Regulation) Act (FCRA).
Amnesty International India was forced to shut down its operations in 2020 after its bank accounts were frozen by Indian authorities. At the time, the organisation said it was facing a sustained crackdown based on baseless allegations of financial wrongdoing.
“The continuing crackdown on Amnesty International India over the last two years and the complete freezing of bank accounts is not accidental,” Amnesty said in a 2020 statement announcing the suspension of its India operations.
In granting interim relief to AIIP and Patel, justice Chandangoudar noted that a coordinate bench of the HC presided over by justice SR Krishna Kumar had, in February this year, extended similar relief to Ananthapadmanabhan.
The court recorded that since the allegations against the petitioners were similar to those against Ananthapadmanabhan and interim protection was warranted.
“Learned counsel for the petitioners submits that a coordinate bench of this court has granted interim order in favour of A-3 (Ananthapadmanabhan). The allegations against accused no. 1 and 4 are similar. Accordingly, interim order as prayed for is granted so far as the petitioners are concerned, till the next date of hearing,” the HC said.
AIIP, Patel, and Anathapadmanabhan had approached the Karnataka HC earlier this year seeking to quash the proceedings pending before the XLVI Additional City Civil and Sessions Judge and Special Judge for PMLA cases in Bengaluru.
According to ED, AIIFT had initially received permission under the FCRA between 2011 and 2012 to accept foreign contributions from Amnesty International UK. However, its FCRA registration was later revoked following what the ED described as “adverse inputs.”
ED also alleged that, to bypass FCRA restrictions, two new entities, AIIP and Indians for Amnesty International Trust, were subsequently created to receive foreign funds in the form of service export payments and foreign direct investment (FDI). By claiming to be non-profit entities while receiving foreign remittances through a for-profit company structure, Amnesty India and others allegedly misused FDI provisions and committed scheduled offences under the PMLA, the ED claims.
The quashing petitions will be heard by the High Court in June this year once it re-opens after the summer vacations.
