ED to probe FEMA violations by ‘Kalki’ Ashram

Move follows seizure of foreign currency worth ₹20 crore during I-T searches

The Enforcement Directorate will step in to probe suspected violations of provisions of the Foreign Exchange Management Act, 1999, by ‘Kalki’ Ashram and Oneness University, founded by self-styled godman ‘Kalki’ Bhagwan.

The move follows the seizure of about ₹20 crore-worth foreign currency during simultaneous searches conducted by the Income Tax Department on the premises of the spiritual guru in Andhra Pradesh, Tamil Nadu and Karnataka on October 16. Official sources in the ED said the possession of such a huge volume of foreign currency was a clear violation of FEMA, unless customs declarations and receipts were produced.

If the investigation points to a regular flow of such unaccounted foreign currency, the agency would consider the assets as proceeds of crime and invoke provisions under the Prevention of Money Laundering Act.

“There are certain restrictions on the possession of foreign currency by a local resident or foreigner, as per FEMA regulations. This seizure of assorted foreign currency gives room for suspicion,” an investigator told The Hindu on Tuesday.

After the surprise searches at 40 locations, the I-T Department said the ashram and its centres had been regularly suppressing receipts. It said the evidence was found with key employees, who maintained a record of cash collections that were unaccounted for and were used to make investments elsewhere, and also to pay for the purchase of immovable assets over and above the document values. A preliminary estimate put the value of such unaccounted cash receipts at ₹409 crore since 2014-15. The seizures also included substantial quantities of undisclosed gold — about 88 kg, valued at ₹26 crore — and diamonds worth ₹5 crore, taking the sum total to ₹93 crore.

Meanwhile, ‘Kalki’ appeared in a video clip on Tuesday, saying he had not fled the country and was operating from the Nemam campus near Chennai.

He said the I-T Department had not accused him of fleeing the country, but the media had done so.

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