A major investigation by the Enforcement Directorate (ED) in Hyderabad and the Telangana Crime Investigation Department (CID) has uncovered a massive alleged financial fraud involving the OM India Group of Charities (OMIF). The probe claims the charity systematically diverted and misappropriated funds meant for humanitarian causes, with the total scale of the alleged fraud estimated at a staggering ₹296 crore.
Tsunami Relief and Bible Funds Siphoned Off
Investigators have detailed several specific instances of alleged fund diversion. A significant portion involves money collected for the 2004 tsunami rehabilitation. According to the chargesheet, OMIF collected ₹4-5 crore in foreign donations intended to build houses and supply boats for fishermen in Tamil Nadu and coastal Andhra Pradesh. Shockingly, the probe found that no relief work was executed. The funds were allegedly siphoned off using fabricated bills and beneficiary lists.
In another major allegation, donations meant for free Bible distribution, amounting to nearly ₹5.9 crore, were reportedly converted into commercial sales. The Bibles were allegedly sold through the OM Books Foundation and other channels, generating unaccounted sales revenue of about ₹9.7 crore. Investigators claim roughly ₹80 lakh to ₹2 crore was misappropriated from these sales alone.
Multi-Crore Diversion Across Schemes
The investigation paints a picture of widespread financial malfeasance across the charity's operations. Key functionaries, including Dr Joseph D'Souza and Josh D'Souza, are accused of orchestrating the diversion of funds, falsifying accounts, and tampering with records. The alleged fraud spans multiple heads:
- Diversion of fee collections amounting to approximately ₹112 crore.
- Misuse of ₹26.87 lakh received under the Right to Education (RTE) and scholarship schemes.
- Premature liquidation of fixed deposits worth about ₹33.6 crore.
- Under-reporting in property transactions. One cited example is a property sold for ₹9.5 crore, but only ₹5.5 crore was recorded, with ₹4 crore allegedly siphoned off.
The ED's attachment order alleges that foreign donations earmarked for the education and welfare of underprivileged and Dalit children were transferred to another entity, GSCS, and used for expenses and acquiring immovable properties. This, the ED states, constitutes "unauthorised diversion and generation of proceeds of crime."
Money Laundering Allegations and Defence
The ED has alleged that Joseph D'Souza, Josh Lawrence D'Souza, OMIF, OMBF, and GSCS were involved in money laundering. The agency cited instances of travel expenses being charged to student sponsorship and humanitarian programs without documentation, and cash traced to Goa for the purchase of two properties at undervalued rates.
In their explanations to the ED, the accused largely denied responsibility. Josh D'Souza claimed he was not in charge of funds and shifted blame to a deceased employee, Sagay Raj, who died in 2020. On Foreign Contribution Regulation Act (FCRA)-related issues, they cited the suspension of the entity and justified creating private entities as a legal route to receive funds. They described inter-entity transfers as loans or gifts and denied cash involvement in property deals, though the ED cited seized chats about cash movement to Goa, which was later admitted to be for a property purchase.
The combined probe by the ED and CID has brought to light a complex web of alleged financial irregularities within a prominent charitable organization, raising serious questions about governance and the misuse of donor funds intended for critical social causes.
