In a recent development, the Karnataka High Court has put a temporary stop to the Enforcement Directorate’s (ED) money laundering investigation involving Amnesty International India Pvt Ltd (AIIPL) and its former head, Aakar Patel. This interim stay arises from a 2022 prosecution complaint and will remain effective until further judicial review.
Justice Hemanth Chandangoudar granted the stay, directing the ED not to proceed with its inquiry under the Prevention of Money Laundering Act (PMLA). Additionally, the court has issued notices to the ED, seeking responses to the petitions filed by AIIPL and Patel, which aim to dismiss the allegations against them.
The origins of the legal battle trace back to a 2019 FIR lodged by the Central Bureau of Investigation (CBI), accusing the Amnesty International India Foundation Trust (AIIFT) of contravening the Foreign Contribution (Regulation) Act (FCRA). Following this, the ED took up the case, alleging that Amnesty India had funneled funds from its UK branch through commercial channels to circumvent FCRA norms.
Amnesty International India halted its operations in 2020 when its bank accounts were frozen by Indian authorities, claiming that these actions were part of a wider crackdown on civil societies. The organization has consistently denied any wrongdoing associated with the charges.
The decision to grant a stay was influenced by a previous interim order issued in February by another bench led by Justice SR Krishna Kumar in favor of G Ananthapadmanabhan, a co-accused in the case. Given the similarity of the charges against Patel and AIIPL to those previously considered, the court deemed it appropriate to extend similar interim relief.
“The allegations against the petitioners mirror those in a related case where interim relief was already granted. Therefore, it is fair to extend this relief to the petitioners until the next date of hearing,” remarked the court.
