Operation Mobilization Scandal Unveiled: ED Raids Expose Massive Money Laundering Network
(Judicial Quest News Network)
In a sweeping operation spanning Hyderabad and surrounding areas, the Directorate of Enforcement (ED) has unearthed shocking irregularities within the Operation Mobilization (OM) group of charities. The raids conducted on 21st and 22nd June 2024 under the Prevention of Money Laundering Act (PMLA), 2002 have brought to light a complex web of financial misconduct and diversion of funds intended for educational and welfare purposes.
The ED’s investigation was initiated following a First Information Report (FIR) by the Telangana CID, revealing that the OM group had allegedly amassed approximately Rs. 300 Crore from foreign donors across multiple countries including the USA, Canada, UK, Australia, and several others. These funds were ostensibly raised for providing free education and meals to Dalit and underprivileged children enrolled in more than 100 Good Shepherd Schools operated by the charity.
However, preliminary findings indicate a gross misappropriation of funds, with substantial amounts diverted towards asset creation and undisclosed activities. Investigations revealed that while significant sums were received under the Right to Education Act and other government schemes, these were not properly recorded, and additional incomes were underreported in the books.
Further complicating matters, it was discovered that many entities within the OM group had not renewed their Foreign Contribution Regulation Act (FCRA) registrations. To circumvent this, foreign donations received by the FCRA-registered ‘OM Books Foundation’ were allegedly funnelled as loans to other group entities, which remain unpaid.
During the meticulously conducted searches at the residences and offices of key OM group officials, the ED seized a trove of incriminating evidence including documents, digital devices, records of clandestine transactions, and details of benami companies. Additionally, several properties suspected to have been acquired through illicit means have been identified for further scrutiny.
“This operation has unveiled a sophisticated scheme where funds meant for the most vulnerable segments of society were diverted for personal gain and other unauthorized purposes,” commented a senior ED official, highlighting the gravity of the findings.
The investigation, which is still ongoing, underscores the ED’s commitment to combat financial crimes and uphold the integrity of charitable organizations operating in India. As authorities continue to unravel the full extent of the malfeasance, the OM group and its affiliates face mounting legal scrutiny and potential repercussions.
For now, the ED has urged the public to remain vigilant against such fraudulent activities and assured that all perpetrators of financial wrongdoing will be brought to justice.
Tweet from ED Hyderabad:
“ED Hyderabad conducts searches at 11 locations under PMLA, 2002, revealing significant irregularities in Operation Mobilization group of charities. Incriminating documents and digital devices seized during operations.”
This unfolding scandal serves as a stark reminder of the importance of transparency and accountability in the charitable sector, where the trust of donors and the welfare of beneficiaries must remain paramount.
