AML watchdog of India has filed a Prosecution complaint against Rana Ayyub. She is better known as an Indian journalist and opinion columnist with The Washington Post. She is the author of the investigative book Gujarat Files: Anatomy of a Cover-Up.
Who filed the complaint?
ED had initiated a money laundering investigation on the basis of an FIR registered on 07.09.2021 by the Indirapuram Police Station, Ghaziabad, U.P, under various sections of IPC 1860, Information Technology Amendment Act 2008 and Black Money Act against Rana Ayyub.
Allegations against Rana Ayyub
She illegally acquired funds from the general public in the name of charity by launching fundraiser campaigns on an online crowdfunding platform-‘Ketto’.
ED investigation revealed that Rana Ayyub launched 3 fundraiser campaigns on ‘Ketto platform’ starting from April 2020, and collected funds totaling Rs. 2,69,44,680/-, namely:
- Help in raising funds for slum dwellers & farmers
- Relief work for Assam, Bihar, and Maharashtra
- Help Rana Ayyub and her team to help those impacted by Covid19 in India
What is FCRA?
The Act prohibits the receipt of foreign funds by candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers, and organizations of a political nature.
Rana Ayyub is a journalist who needed registration under the FCRA act to receive foreign money. However, she was not registered under the Foreign Contribution Regulation Act 2010.
An investigation by ED revealed that the funds raised on the online platforms were received in the accounts of her father and sister and subsequently transferred to her personal accounts. Ms. Rana Ayyub utilized these funds to create a fixed deposit of Rs. 50 lakhs for herself and also transferred Rs. 50 Lakhs in a new bank account.
ED investigation revealed that only approx. Rs. 29 lakhs was used for relief work.
In order to claim more expenses towards relief work, fake bills were submitted by the journalist. Subsequently, bank balances in the accounts of Ms. Rana Ayyub amounting to Rs.1,77,27,704/- (including FD of Rs. 50 Lakh) were attached u/ s 5(1) of PMLA vide a Provisional Attachment Order dated 04.02.2022.
Diversion of funds for personal benefit
An investigation by ED further revealed that Ms. Ayyub illegally raised Rs. 2.69 Crore by launching three online campaigns in the name of charity by cheating the general public donors. These funds were not used for the intended purpose but instead used for the creation of assets for herself. She tried to project these funds as untainted and thus has laundered the funds received from the general public. Ms. Rana Ayyub also received these funds from foreign countries without any approval or registration from the government which is required under Foreign Contribution Regulation Act, of 2010.
ED Investigation has established that Ms. Rana Ayyub had launched the aforesaid campaigns with the sole intention to cheat the general public and acquired Proceeds of Crime in form of Fixed Deposits and balances in bank accounts projecting them as untainted.
