The promoters of the Punarjani Manappat Foundation scheme are facing legal scrutiny in Kerala for allegedly violating the FCRA

The non-governmental organization (NGO) Manappat Foundation, which mobilized foreign funds for Kerala opposition leader VD Satheesan’s flood rehabilitation scheme – Punarjani – for his constituency in Paravoor, Ernakulam, seems to be facing legal scrutiny.

Officials said on Monday (January 5, 2025) that the Kerala government is legally probing a 2025 report by the Vigilance and Anti-Corruption Bureau (VACB) to the Home Ministry, which said an NGO violated Rule 19 of the Foreign Contribution (Regulation) Act (FCRA) by allegedly failing to maintain records of termination of foreign donation penalties. abroad.

Officials said the VACB had recommended that the Central Bureau of Investigation (CBI) conduct an inquiry against the NGO’s chairman, Ameer Ahammed, regarding “numerous suspicious transactions of ₹1.22 crore” through the foundation’s FRCA account, current account and Mr. Ahammed’s personal accounts.

Additionally, officials said the VACB said the Manappat Foundation “is not maintaining documents or records relating to receipt or expenditure of foreign funds in violation of Rule 19 of the FCRA. Home ministry sources said the government is ready to seek a legal opinion on how the state should proceed in this matter.”

They noted that a violation of Rule 19 of the FCRA would constitute an offense under the Prevention of Corruption Act (PCA) if the violation involved persons falling within the broad definition of public office. They said the office of spokesperson AN Shamseer had last sought an explanation from the VACB regarding the Punarjani investigation in January.

They said the CBI could book a public servant who participates in or organizes violations of the FCRA by abusing his position or office under the PCA.

In particular, the VACB submitted as evidence a video purportedly showing Mr Satheesan soliciting funds from donors for a meeting in Birmingham, UK in 2019. Mr Satheesan also confirmed on Sunday that he had visited Birmingham to meet with potential donors.

Officials said the government has also sought a legal opinion on whether the FCRA offense flagged by the VACB falls under the Benami Property Transactions Prohibition Act, 1988 or the Prevention of Money Laundering Act (PMLA).

Satheesan denies the allegations

Mr Satheesan has since denied the allegations. He stated that the VACB did not file a case against him under the DPS. He did not personally manipulate the funds and the charity work was carried out by a non-governmental organization. The Congress termed the government’s move against Mr Satheesan as a “political witch hunt”.

However, the Communist Party of India (Marxist) (CPI(M)) on Monday signaled that the Left Democratic Front (LDF) would politically weaponize the alleged FCRA violation.

CPI(M) state committee member and general education minister V. Sivankutty compared the controversy surrounding the Punarjani scheme to the Sabarimala gold theft case. He said the Congress should not take VACB’s incriminating findings against the Punarjani scheme lightly.

The head of the foundation welcomes the probe

Meanwhile, Mr Ahammed told The Hindu that he welcomed the CBI probe. He said “only an investigation will clear the foundation’s name.”

Mr. Ahammed claimed that the Manappat Foundation had done nothing wrong. He told the VACB that the foundation has FCRA registration to seek foreign funds for the rehabilitation of flood-affected people in Paravoor. The foundation produced all the records the agency sought and made a clean play of its operation.

He said the transactions involving Punarjani were “totally above standard, accounted for, audited and recorded”.

Mr. Ahammed said the current turn of events only “demotivates” socially engaged persons and entities. “It is important for the foundation’s social work that we are not exposed to a permanent cloud of suspicion. Perhaps a CBI inquiry will help clear the air,” he added.

Published – 05 Jan 2026 15:38 IST