Forex Violation Raises Concerns: Kerala Trust Under Scrutiny

The Enforcement Directorate (ED) has initiated a case against a Kerala-based charitable organisation for alleged violations of the Foreign Contribution Regulation Act (FCRA). The Kunhahmed Musliyar Memorial Trust, located in Kasargod, is accused of receiving Rs 220 crore from abroad without the appropriate clearances.

This investigation highlights the role of non-resident Indian, Ibrahim Ahmad Ali, the trust's chairman, who funneled the funds from a UAE company, Universal Lubricants LLC. The ED stated that these transactions were inaccurately recorded as 'unsecured loans,' without proper documentation or repayment terms.

Following raids conducted under the Foreign Exchange Management Act (FEMA), authorities seized crucial evidence including financial documents and data storage devices. Allegedly, parts of the foreign funds were used illegally to purchase agricultural land in India, compounding the regulatory breach.

(With inputs from agencies.)