A detailed and explosive complaint has been submitted to the Ministry of Home Affairs (MHA), raising serious allegations of systemic violations of the Foreign Contribution (Regulation) Act, 2010 (FCRA), suspected benami transactions, and financial misconduct involving four prominent FCRA-registered NGOs based in Anantapur district, Andhra Pradesh.
The complaint filed by NGO watchdog Legal Rights Protection Forum (LRPF), addressed to the Joint Secretary and Director of the FCRA Division, MHA, seeks an immediate and thorough investigation by the Enforcement Directorate (ED). The complaint concerns the activities of the following organizations:
- Rural Development Trust (RDT) – FCRA No. 010120001
- Rayalaseema Development Trust (RyDT) – FCRA No. 010120012
- Accion Fraterna Trust (AccF) – FCRA No. 010120029
- Women’s Development Trust (WDT) – FCRA No. 010120013
The complainant has submitted multiple annexures comprising FCRA returns filed by these organizations from FY 2011-12 to FY 2014-15 and has called for scrutiny under multiple statutes including the Prevention of Money Laundering Act (PMLA), the Prohibition of Benami Property Transactions Act, and the Income Tax Act.
Backdrop Of Regulatory Crackdown
The complaint builds upon prior action already taken by the MHA against RDT, whose FCRA license renewal was denied on 21 April 2025, citing the diversion of over ₹26 crore—allegedly collected from hospital patients despite the hospitals being built with ₹60 crore in foreign funds—into non-FCRA domestic bank accounts. The MHA’s audit also noted unauthorized fund transfers to non-FCRA registered entities, thus intensifying compliance violations.
Allegations of Coordinated Benami Operations
The heart of the complaint centers on the claim that RDT, along with RyDT, Accion Fraterna Trust, and WDT, operate not as independent legal entities but as a closely interconnected network designed to circumvent regulatory scrutiny and layer foreign funds under the guise of charitable activities. These NGOs allegedly share overlapping personnel, field offices, and project declarations, as well as proximity in registered addresses in Anantapur.
An extensive list of identical Door Numbers and project sites declared by the three NGOs was presented to bolster allegations of fraudulent duplication of activities and misrepresentation in FCRA returns.
The repetition of the same project locations by multiple NGOs raises suspicion of circular utilization of funds and potential money laundering practices.
Conflict of Interest and Donor-Recipient Duality
The complaint highlights that Mr. Moncho Ferrer, named as Chief Functionary of RDT, RyDT, and AccF, also serves as Director of foreign donor organizations—Vicente Ferrer Foundation (USA) and Fundación Vicente Ferrer (Spain). This dual control allegedly creates a conflict of interest, allowing for centralized control over both inflow and outflow of foreign contributions, and possibly undermining the independence required under FCRA regulations.
WDT’s Questionable Hospital Funding
One particularly damning charge concerns the Women’s Development Trust, which reportedly received large foreign contributions in FY 2011–12 to support “WDT Hospitals” in Kalyandurgam and Kanekal. However, there is no evidence that WDT owns or operates such hospitals. Moreover, identical photographs of hospital infrastructure were found in both WDT’s 2017–18 Annual Report and RDT’s official website, but each displaying different branding—suggesting deceptive presentation to inflate project credentials and mislead stakeholders.
This has raised red flags about fund diversion, asset misappropriation, and possible benami ownership of key infrastructure.
Suspicious Inter-Organizational Transfers
According to the complaint, inter-NGO financial transfers indicate layering of funds:
The ₹23 crore transferred in FY 2015–16 by WDT to RDT for a vague “Social Purpose” has especially drawn concern, with the complaint describing this as indicative of money laundering and non-arm’s-length fund movements.
Unreported Foreign Contributions Totaling ₹36 Crore
WDT is also accused of failing to disclose donors or purposes for foreign contributions received across four years:
These unexplained receipts, with no donor information or program details, reportedly violate Sections 18 and 19 of the FCRA, which mandate full transparency on both foreign source and fund utilization.
Call for ED Probe
Given the grave nature of the allegations—ranging from FCRA violations, benami asset creation, suspected money laundering, and tax evasion—the complainant has urged the Ministry of Home Affairs to immediately refer the matter to the Enforcement Directorate for a comprehensive, in-depth, and time-bound investigation.
The complaint concludes by asserting that this case poses a serious threat to the transparency and credibility of foreign-funded NGOs operating in India and should be treated with the “utmost seriousness” in the interest of national integrity and financial probity.
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