Chennai-based NGO under IT scanner for diverting funds for religious purpose

C Shivakumar

Chennai:

A Chennai-based non-governmental organisation is under the Income Tax
scanner for allegedly diverting funds received for welfare of children
to Christian religious institutions.

An Income Tax official told Express that Caruna Bal Vikas has been
collecting donations worth Rs 100 crore each year from US-based agency
Compassion International. “While 10 per cent of it is being used for
welfare of children, 90 per cent of the funds is diverted to 300
organsisations, which have been registered as religious and
socio-religious institutions.

The official alleged that the funds are used by the Christian outfits
to convert people. AS per FCRA rules, the organisation to which the
fund is directed should also be registered with FCRA and it should be
social organisations.

Interestingly, when Income Tax officials checked the background of 300
organisations in Ministry of Home Affairs website, it was found only
one third of the organisations are social (charitable) organisations
while the rest are socio-religious and religious institutions. Under
FCRA Act, money meant for social purpose could not be diverted for
socio-religious and religious purposes.

The Income Tax department sources said that a probe into the funds of
Caruna Bal Vikas was started in March 2013.

“We carried out the assessment for the year 2010-11 which was competed
in 2013 and the demand raised was 28.59 crore. Similarly, assessment
for the year 2011-12 was completed in 2014 and the demand raised was
30.20 crore. Similarly, assessment carried out in 2012-13, raised a
demand for 28.91 crore,” said the official.

Once Income Tax department raised the demands, Caruna Bal Vikas was
shut down and a new company Adhane Management Consultants Private
Limited came into being run by Aswin Paul, the same CEO of Caruna Bal
Vikas, in May 2014. This new company started paying taxes.

However, Compassion International has started giving funds directly to
300 organisations. The IT official said that 40 per cent of the 300
organisations are in South of which 20 per cent alone are in Tamil
Nadu. The agenda of Compassion International is alleged to bring
children out of physical, emotional, social and economic poverty and
make them fulfilled Christian adults.

It is alleged by Income Tax sources that Compassion International gets
generosity funds from US under Adopt a Child in India programme. A $20
a month is given to Compassion International to fund a child in the
child development centres being run by the 300 institutions. It is
alleged that the institutions would have anywhere between 15,000 to
20,000 children and Compassion International gives them $16 a month
per child.

“We are urging the Ministry of Home Affairs that fund flow from
Compassion International should be stopped,” a Income Tax source
stated.