ED attaches Agricultural Land and building of Hemkunt Foundation under PMLA Provisions
ED – Agricultural Land – ED attaches Agricultural Land – building of Hemkunt Foundation – Hemkunt Foundation under PMLA Provisions – PMLA Provisions – PMLA – taxscan
ED – Agricultural Land – ED attaches Agricultural Land – building of Hemkunt Foundation – Hemkunt Foundation under PMLA Provisions – PMLA Provisions – PMLA – taxscan
The Directorate of Enforcement (ED) has provisionally attached immovable properties, in Covid-19 Fund Misappropriation Case belonging to Hemkunt Foundation in District Khandwa, Madhya Pradesh, worth Rs. 5.37 Crore under the provisions of Prevention of Money Laundering Act, 2002.
The investigation against Hemkunt Foundation was initiated on the basis of an FIR registered by Special Cell, Delhi Police, wherein it was alleged that Hemkunt Foundation raised crores of rupees from individuals and corporates in the name of Covid relief and oxygen supply during the peak of the second wave of Covid-19 but the donation was siphoned off and utilized for activities for personal gain.
The investigation conducted by the Directorate under provisions of the PMLA revealed that Hemkunt Foundation collected huge donations to the tune of Rs. 77.10 Crore during the second wave of Covid-19 from corporates and the general public on the pretext of providing relief to people suffering from Covid-19.
Hemkunt Foundation diverted most of the funds thus collected towards the assets of the foundation, such as keeping it in Fixed Deposits (Rs. 17.32 Crore), purchasing land in Gurugram (43 Crore), and spending on land purchase and construction activities in Madhya Pradesh (Rs. 5.37 Crore), as per findings of the investigation.
The Enforcement Directorate had earlier attached the said land worth Rs. 43 Crore and had frozen the Fixed Deposits of Rs. 17.32 Crore during the course of the investigation. With the present attachment of land and building worth Rs. 5.37 Crore, ED has cumulatively attached/frozen assets worth Rs. 65.69 Crore representing the proceeds of crime in this case.
The Hemkunt Foundation is accused of exploiting the pandemic situation for personal gains and The ED has taken swift action against the foundation and has frozen its assets worth crores of rupees. The investigation is still underway, and more details are expected to come to light.
The pandemic has hit the world hard, and many individuals and organizations have come forward to provide assistance. However, instances of such fraudulent activities highlight the need for more stringent regulations to prevent such incidents in the future.
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