How spiritual leaders are laundering hawala, secretive money
Agencies flag a series of money laundering and parking happening for decades in many religious trusts, especially in certain Hindu Mutts, Godmen/ women Ashrams, Christian, Islam, and Sikh Trusts. The recent report by the Agencies after analyzing many inputs and intelligence reports points out that religious trusts and mutts in Andhra Pradesh and Karnataka are the key centres of money parking and laundering. Kerala-based Christian and Islamic trusts are also engaged in this hawala route money parking.
Kerala-based certain Christian trusts are routing money to northern areas and these funds originated from abroad. One of the Sikh sect’s trusts is parked their ill-gotten money from Industrialist brothers engaged in the health and health insurance sector.
The investigators say in India, religious trusts, temples, and spiritual organizations have long been seen as bastions of faith, devotion, and charity. Yet, behind the sacred veil of these institutions lies a sinister undercurrent of financial crimes, ranging from money laundering to hawala trade. Prominent religious entities, particularly in Andhra Pradesh and Karnataka, have emerged as key players in illegal financial operations, exploiting their charitable status and close ties with political leaders, judges, bureaucrats, and business houses. Sanctity and Religious cover are misused by these organizations for the dubious money parking and routing.
Among these organizations, the prominent Hindu Mutt & Trust has drawn significant attention for its alleged role in orchestrating a web of illicit transactions, using religious activities as a cover. Similar allegations have been raised against temple trusts in Andhra Pradesh and Karnataka, where the nexus between religious figures and powerful elites has allowed them to extend “convenient services” in exchange for protection and continued impunity.
The Financial Intelligence Unit of the Finance Ministry and probe agencies like the Income Tax and Enforcement Directorate have already reported to the Government on this murky world of these religious entities, their links to high-profile individuals, and the financial schemes they operate under the guise of religion. The agencies got this information basically from the interrogations and raids in many cases. Anti-money laundering agencies of many countries also alerted their Indian counterparts.
Mutts & Trusts: A case study in financial crime
The Mutts & Trusts, mainly based in Southern India, has garnered immense wealth and influence over a while. What started as a small religious and charitable organization has grown into a sprawling empire, with assets ranging from real estate to businesses, thanks to generous donations from devotees and corporate entities. However, beneath the surface, Mutts & Trusts is alleged to be at the center of a sophisticated money laundering and hawala operation that stretches across national and international borders.
Several whistleblowers and investigators have already reported this matter to the Black Money Commission and pointed to a network of shell companies and benami properties linked to some extremely powerful Mutts & Trusts. These entities funnel black money into legitimate financial channels, disguising illicit gains as charitable donations or real estate investments. The trust is also believed to be involved in hawala transactions, an informal and illegal money transfer system that bypasses traditional banking channels. The Hawala system allows for the transfer of funds without leaving any trace, making it a preferred method for money laundering and tax evasion.
One of the key reasons the Mutts & Trusts has been able to operate with relative impunity is its deep-rooted connections with influential political figures. Over the years, the trust has allegedly provided political leaders with financial support for election campaigns, personal projects, and business ventures. In return, these leaders have ensured that the trust’s operations are shielded from scrutiny by law enforcement agencies and regulators. This symbiotic relationship allows the Mutts & Trusts to continue its illicit activities while maintaining an air of legitimacy as a religious organization.
Andhra Pradesh Temple Trusts: Sanctity as a shield
Andhra Pradesh, home to some of the most famous temples in India, is also home to religious trusts that have been accused of engaging in large-scale financial malpractices. Temple trusts in the state, which oversee the administration and upkeep of sacred sites, receive millions of rupees in donations from devotees every year. Much of this wealth is in cash, making it difficult to trace and an ideal vehicle for laundering black money.
Several temple trusts in Andhra Pradesh have been implicated in money laundering schemes that involve purchasing land, properties, and businesses in the name of the trusts. These assets are then sold or rented at inflated prices, creating the appearance of legitimate income. In reality, a significant portion of the funds used for these transactions originates from black money. The temple trusts act as a convenient front for these operations, using their religious status to avoid scrutiny from tax authorities and financial regulators.
The nexus between temple trusts and political leaders in Andhra Pradesh is well-documented. Politicians from various parties have been known to make large “donations” to temple trusts, particularly during election seasons. In exchange, the temple trusts provide these leaders with access to vast sums of money, which can be used for election campaigns or personal enrichment. The politicians, in turn, protect the temple trusts from investigations and audits, ensuring that their financial activities remain hidden from public view.
One of the most notorious cases involves a prominent temple trust in Andhra Pradesh that allegedly funneled money through a network of shell companies to finance the real estate projects of a senior political leader. Despite several complaints and inquiries, no action has been taken against the trust, thanks to the leader’s influence and connections in the government.
Karnataka’s religious institutions: A hub for illicit financial operations
Karnataka, like Andhra Pradesh, is home to several powerful religious institutions, many of which are deeply intertwined with the political and business elite. These institutions, including temples and religious trusts, have been accused of using their vast wealth and influence to engage in money laundering and hawala trade.
One prominent religious trust in Karnataka, which manages several temples and educational institutions, has been under investigation for allegedly using its real estate holdings to launder black money. The trust is believed to have purchased vast tracts of land using illicit funds and then sold the land to business houses at inflated prices, creating the appearance of legitimate income. Much of this money is then funneled through hawala channels to overseas accounts, making it nearly impossible to trace.
The trust’s connections with political leaders and business houses have allowed it to operate with impunity. Several high-ranking politicians in Karnataka are believed to have received financial favors from the trust, including donations for election campaigns and real estate deals. In return, these politicians ensure that the trust’s operations remain off the radar of tax authorities and law enforcement agencies.
In one case, a former chief minister of Karnataka is alleged to have used a religious trust to launder money from real estate deals and mining operations. The trust acted as a front, purchasing properties on behalf of the politician and then selling them at inflated prices to legitimate businesses. Despite widespread rumors and media reports, the investigation into the trust’s activities has stalled, likely due to the former chief minister’s political influence.
Judges, bureaucrats, and business houses: The beneficiaries of religious trusts
The reach of religious trusts like the Mutts & Trusts and those in Andhra Pradesh and Karnataka extends beyond the political sphere. Several high-ranking judges and bureaucrats are believed to be involved in these trusts’ illicit operations, either directly or through family members. These officials receive financial kickbacks, real estate deals, and other favors in exchange for ensuring that investigations are delayed or quietly dropped.
In one high-profile case, a sitting high court judge is alleged to have received several prime properties from a religious trust in Andhra Pradesh as “donations” for a charitable foundation he runs. In reality, these properties were part of a larger money-laundering scheme orchestrated by the trust. Despite mounting evidence, no legal action has been taken against the judge, thanks to his connections with political leaders and senior bureaucrats.
Business houses, too, benefit from their associations with religious trusts. Several companies have used religious institutions to launder money, evade taxes, and secure lucrative government contracts. These businesses donate large sums of money to the trusts, which in turn provide them with access to political leaders and government officials. The result is a closed-loop system where political favors, financial transactions, and religious patronage are all intertwined.
The religious shield: Legal exemptions and exploitation
One of the key factors enabling religious trusts to engage in these illicit activities is the legal and regulatory exemption provided to religious organizations in India. Under Indian law, religious trusts enjoy tax benefits and regulatory protections that are meant to support charitable activities. However, these exemptions have been exploited by unscrupulous individuals to engage in financial crimes without fear of retribution.
Religious trusts are also protected by the public’s reverence for religious institutions, making it difficult for law enforcement agencies and regulators to investigate them. Few are willing to question the financial dealings of a religious trust, fearing public backlash or accusations of blasphemy.
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long known to Indiam citizens. govt woke up after 75 years