₹5.10 Crore from Belgium-Based Entity Routed Without FCRA Registration; ED Probes Alleged Misuse in Jaisalmer

ED’s FEMA investigation examines alleged foreign-donation irregularities linked to Jaisalmer.

JAISALMER (India CSR): The Directorate of Enforcement (ED), Jaipur Zonal Office, has conducted searches at two premises in Jaisalmer in Rajashtan in connection with an investigation into the alleged receipt and misuse of about Rs. 5.10 crore in foreign donations. The action, carried out on September 19 under the Foreign Exchange Management Act (FEMA), 1999, follows allegations that funds received from a Belgium-based entity were routed without the required FCRA registration and used for purposes other than those declared to banks.

According to the ED’s press release, the investigation began on the basis of specific intelligence regarding Deu Ram, a Jaisalmer resident, who is alleged to have received foreign funds from Belgium-linked entities. The agency said the funds were allegedly used for proselytisation and conversion-related activities among vulnerable communities in the district. These remain preliminary findings of the investigating agency, and further investigation is underway.

The ED stated that Deu Ram and his associate, Gyan Chand, allegedly received foreign remittances totalling around Rs. 5.10 crore. The payments were reportedly described under multiple purpose codes, including educational services, cultural and recreational activities, inward remittances by non-resident Indians for family maintenance and savings, commission-agent services, and employee compensation.

The agency alleged that a substantial share of the money came from Amar ASBL, an organisation said to be based in Brussels, Belgium. ED said Amar ASBL claims to be a non-profit organisation, but it allegedly did not establish or register a trust or NGO in India despite operating activities in Jaisalmer for nearly 14–15 years through local associates.

The probe has raised significant questions about the transparency of foreign-fund flows and the safeguards around their end use. According to ED, no educational, cultural or recreational services were actually rendered to Amar ASBL, despite such descriptions being used while reporting remittances to banks. Instead, the funds were allegedly managed and deployed for activities connected with the organisation in Jaisalmer.

The agency has further alleged that the foreign donations were received without FCRA permission and by misdeclaring the purpose of remittances. It claimed that part of the funds was used for personal expenses and for influencing the cultural and religious beliefs of vulnerable sections under the stated objective of providing educational support to children.

A key aspect of the investigation concerns cash withdrawals. ED said that about Rs. 2.60 crore was withdrawn in cash from bank accounts linked to the alleged recipient. It also claimed that proper books of account and financial records for the receipt and utilisation of the foreign donations were not maintained.

During the searches, the agency said it recovered documents and digital evidence that it considers incriminating. The ED also stated that the Belgium-based organisation was set up in 2011 and is managed by two Belgian nationals, Jose Goffinet and his son, Salian Goffinet. The agency alleges that they remain in regular contact with Deu Ram and Gyan Chand, and visit Jaisalmer annually for two to three weeks.

According to the press release, these visits allegedly included meetings with parents and relatives of children, as well as gatherings intended to promote cultural and religious beliefs and practices. The ED has not disclosed further details of the recovered material or whether any formal notice, penalty proceedings or prosecution has been initiated so far.

The probe has also identified alleged attempts to route foreign funds through personal bank accounts of other persons linked to the case after banks reportedly declined to process remittances into the accounts of Deu Ram and Gyan Chand.

The case places renewed attention on compliance with the Foreign Contribution (Regulation) Act, 2010, and FEMA provisions. Organisations and individuals receiving foreign contributions are expected to maintain clear records, comply with registration or prior-permission requirements where applicable, and ensure that funds are used only for stated, lawful purposes.

ED said further investigation is in progress.

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