The Enforcement Directorate is planning to engage the CBI to probe a case of alleged illegal use of foreign debit cards by a US-based global Christian mission to withdraw crores of rupees in some Maoist-hit regions, sources said on Friday.
In April, the ED had conducted searches related to the case in Bengaluru and Mysuru (Karnataka), Goalpara (Assam) and Dhamtari (Chhattisgarh) under the Foreign Exchange Management Act (Fema) against an entity named The Timothy Initiative (TTI).
The central agency had initiated the case after the financial intelligence unit shared a suspicious transaction report flagging a purported modus operandi that involved “receipt and utilisation of” foreign funds in India through overseas debit cards issued by a US bank, “bypassing” prescribed banking and regulatory channels.
“After the raids, the ED shared evidence with the police departments of Chhattisgarh and Karnataka, which registered separate FIRs in May and June. We will also soon file a criminal case under the anti-money laundering law,” an ED official said.
The ED is said to have gathered documents and financial transaction records, which allegedly indicate a “systematic” routing of foreign funds into Maoist-hit areas, destruction of digital evidence and the involvement of a foreign organisation operating through a network of shell entities.
“This information shall be shared with the CBI for appropriate action under the applicable provisions of the law, including the Foreign Contribution Regulation Act (FCRA),” the ED official said.
According to the ED, the TTI is not registered under the FCRA, which enables legal foreign funding.
On July 1, Karnataka High Court dismissed a petition seeking to quash a Bengaluru police case registered against five people linked to the TTI under the stringent Unlawful Activities Prevention Act. The petition was filed by Micah Mark, who was intercepted by the ED in April with 24 foreign debit cards.