Karnataka High Court halts ED’s money laundering case against Amnesty India and Aakar Patel
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The Karnataka High Court has temporarily stayed the money laundering case initiated by the Enforcement Directorate (ED) against Amnesty International India and its former head, Aakar Patel.
The case, which stems from alleged violations of foreign funding laws, has been put on hold until further notice.
On Monday, April 28, Justice Hemanth Chandangoudar granted interim relief to Amnesty International India Pvt Ltd (AIIPL) and Patel, directing the ED not to pursue any further action under the Prevention of Money Laundering Act (PMLA). The court has also issued a notice to the ED, asking for a response to the petitions filed by AIIPL and Patel seeking to quash the case.
The ED’s case is rooted in a 2019 FIR filed by the Central Bureau of Investigation (CBI) against Amnesty International India Foundation Trust (AIIFT), which accused the organisation of violating the Foreign Contribution (Regulation) Act (FCRA). The ED later alleged that Amnesty India had received funds from Amnesty UK and routed them through commercial channels to bypass FCRA norms.
In May 2022, the ED filed a prosecution complaint - akin to a chargesheet - against AIIPL, Aakar Patel, former CEO G Ananthapadmanabhan, and others, citing money laundering and foreign funding violations.
Amnesty International India ceased operations in 2020 after its bank accounts were frozen by Indian authorities. At the time, the organisation called the move part of an ongoing crackdown on civil society and dismissed the allegations as unfounded. “The freezing of our accounts and the continued harassment over two years is no coincidence,” Amnesty had said in a statement.
In its latest ruling, the High Court noted that a similar interim order had been granted earlier this year to Ananthapadmanabhan by another bench led by Justice SR Krishna Kumar. Since the charges against Patel and AIIPL closely resemble those in that case, the court extended the same protection.
The legal challenge targets ongoing proceedings before the XLVI Additional City Civil and Sessions Judge and Special Judge for PMLA cases in Bengaluru. The High Court’s interim stay will remain in place until the next hearing date.
