Non-governmental organisation (NGO) Manappat Foundation, which mobilised foreign funds for Kerala’s Leader of the Opposition V.D. Satheesan’s flood rehabilitation scheme – Punarjani – for his constituents in Paravoor, Ernakulam, appears to face legal scrutiny.
Officials on Monday (January 5, 2025) said the Kerala government was legally examining the Vigilance and Anti-Corruption Bureau (VACB) report to the Home department in 2025, which stated that the NGO had violated Rule 19 of the Foreign Contribution (Regulation) Act (FCRA) by allegedly failing to maintain records of foreign donations for the Punarjani project and of the utilisation of endowments from abroad.
Officials said the VACB recommended an inquiry by the Central Bureau of Investigation (CBI) against the NGO’s chairperson, Ameer Ahammed, concerning “numerous suspicious transactions amounting to ₹1.22 crore” through the foundation’s FRCA account, the current account, and the personal accounts of Mr. Ahammed.
Moreover, officials said, the VACB reported that Manappat Foundation “did not maintain documents or records regarding the receipt or expenditure of foreign funds in violation of Rule 19 of the FCRA. Home department sources said the government was poised to seek legal opinion on how the State should proceed in the matter.
They noted that a violation of Rule 19 of the FCRA would constitute an offence under the Prevention of Corruption Act (PCA) if the contravention involves persons who fall under the broad definition of a public office. They said Speaker A.N. Shamseer’s office had in January last sought clarification from the VACB concerning the Punarjani investigation.
They said the CBI could book a public servant who participates in or organises an FCRA violation by misusing their position or office under the PCA.
Notably, the VACB had submitted as evidence a video purportedly showing Mr. Satheesan soliciting funds from donors at a meeting at Birmingham in the U.K. in 2019. Mr. Satheesan had also confirmed on Sunday that he had visited Birmingham to meet potential donors.
Officials said the government has also sought legal opinion on whether the FCRA offence flagged by the VACB would fall within the scope of the Prohibition of Benami Property Transactions Act, 1988, or the Prevention of Money Laundering Act (PMLA).
Satheesan denies charges
Mr. Satheesan has since denied the accusations. He stated that the VACB had failed to make a case against him under the PCA. He did not personally handle the funds, and the NGO conducted the charitable work. The Congress had termed the government’s move against Mr. Satheesan as “a political witch-hunt.”
However, the Communist Party of India (Marxist) [CPI(M)] signalled on Monday that the Left Democratic Front (LDF) would politically weaponise the alleged FCRA violation.
CPI(M) State committee member and General Education Minister V. Sivankutty compared the controversies surrounding the Punarjani scheme to the Sabarimala gold theft case. He said the Congress should not take the VACB’s incriminating findings against the Punarjani scheme lightly.
Foundation head welcomes probe
Meanwhile, Mr. Ahammed, told The Hindu that he welcomed the CBI probe. He said “only an inquiry will clear the foundation’s name.”
Mr. Ahammed claimed that Manappat Foundation has done no wrong. He had told the VACB that the foundation had FCRA registration to seek foreign funds for the rehabilitation of flood-affected people in Paravoor. The foundation had produced all records sought by the agency and made a clean breast of its functioning.
He said the transactions concerning Punarjani were “totally above board, accounted, audited and on record.”
Mr. Ahammed said the current turn of events would only “demotivate” socially committed persons and entities. “It is important for the foundation’s social work that we are not cast under a permanent cloud of suspicion. Perhaps a CBI inquiry will help clear the air,” he added.
Published – January 05, 2026 03:38 pm IST
