CHENNAI: A Chennai-based non-governmental organisation (NGO) has come under the Income Tax department scanner for allegedly diverting funds received for welfare of children to Christian religious institutions.
A senior Income Tax official told Express that Caruna Bal Vikas has been collecting donations worth Rs 100 crore every year from US-based Compassion International. “Of this, only 10 per cent is being used for the welfare of children. The rest of the funds is diverted to 300 organisations, which have been registered as religious and socio-religious institutions,” said the official.
The official alleged that the funds are suspected to be used by the Christian outfits for conversion.
As per the Foreign Contribution Regulation Act (FCRA), 2010, the organisation to which the fund is directed should also be registered under the FCRA, and it should also be a social organisation.
When Income Tax officials verified the background of the 300 organisations in the Ministry of Home Affairs website, it was found that only one-third of them are charitable organisations, with the rest being socio-religious and religious institutions. Under the FCRA, money meant for social purposes can’t be diverted for socio-religious and religious purposes. Income Tax department sources said a probe into the funds of Caruna Bal Vikas was launched in March 2013. “We carried out the assessment for the year 2010-11, which was completed in 2013, and the demand for Rs 28.59 crore was raised. Similarly, assessment for 2011-12 was completed in 2014 and the demand for Rs 30.20 crore was raised. Assessment carried out in 2012-13 resulted in a demand for Rs 28.91 crore,” said the official.
Once the tax department raised the demands, Caruna Bal Vikas was shut down and a new company called Adhane Management Consultants Private Limited was floated in May 2014. It was run by Aswin Paul, the same CEO of Caruna Bal Vikas. The new company started paying taxes.
However, Compassion International has started giving funds directly to the 300 organisations.
The IT official said 40 per cent of the 300 organisations are in South India, of which 20 per cent are in Tamil Nadu.
