In an era where transparency and accountability form the bedrock of civil society organizations, the blatant misuse and diversion of foreign contributions by ostensibly charitable trusts severely undermine public trust and threaten the very fabric of legal and ethical governance. The case of the Women’s Development Trust (WDT), Rural Development Trust (RDT), and their associated entities exemplifies a disturbing pattern of financial malpractice involving fraudulent fundraising, fund diversion, and benami asset transactions that flagrantly violate multiple Bharatiya laws including the Foreign Contribution (Regulation) Act (FCRA), the Prevention of Money Laundering Act (PMLA), and the Benami Transactions (Prohibition) Act.
Such covert and systemic misuse of foreign funds not only erodes the credibility of legitimate development efforts but also jeopardizes national security by circumventing regulatory oversight. Against this backdrop, the Legal Rights Protection Forum (LRPF) emerges as a vigilant watchdog committed to unearthing these malpractices, demanding stringent investigations, and advocating for the protection of Bharat’s financial integrity and social justice.
As per Communemag, a detailed complaint filed by the Legal Rights Protection Forum (LRPF) has raised serious concerns about potential financial misconduct and Foreign Contribution (Regulation) Act (FCRA) violations involving four prominent NGOs operating in the Anantapur district. The organizations named in the complaint include: Rural Development Trust (RDT), Rayalaseema Development Trust (RyDT), Accion Fraterna Trust (AccF), and Women’s Development Trust (WDT).
According to the complaint, these organizations have allegedly contravened multiple legal provisions, including the FCRA, 2010, the Prevention of Money Laundering Act (PMLA), 2002, the Prohibition of Benami Property Transactions Act, 1988, and various sections of the Income Tax Act, 1961.
Complaint submitted to the Ministry of Home Affairs flags serious financial irregularities by NGOs
A detailed complaint has been submitted to the Ministry of Home Affairs by the LRPF, highlighting grave concerns over alleged systematic financial misconduct and violations of the Foreign Contribution (Regulation) Act, 2010 (FCRA) by the Rural Development Trust (RDT), Anantapur, and its closely linked organizations. The complaint calls for an urgent and thorough investigation by the Enforcement Directorate, pointing to possible breaches of the Prevention of Money Laundering Act, 2002 (PMLA), the Prohibition of Benami Property Transactions Act, 1988 (PBPT Act), and the Income Tax Act, 1961.
Regulatory action against Rural Development Trust
The Ministry of Home Affairs, on April 21, 2025, officially refused to renew the FCRA license of the Rural Development Trust following audits that revealed extensive financial irregularities. Notably, funds exceeding ₹26 crore collected from patients at hospitals constructed with over ₹60 crore in foreign donations were allegedly diverted into non-FCRA domestic accounts, in blatant violation of the FCRA, 2010.
Further investigations uncovered that RDT unlawfully transferred foreign contributions to entities lacking valid FCRA registration, compounding its non-compliance.
Network of interconnected NGOs and suspected benami operations
Analysis reveals a coordinated pattern of FCRA violations involving RDT and three other NGOs operating in Anantapur
| NGO Name | FCRA Number | Registered Address |
|---|---|---|
| Rayalaseema Development Trust (RyDT) | AP/2017/0169149 | H.No 28/439/E1, Bangalore Highway Road, Anantapur |
| Women’s Development Trust (WDT) | AP/2017/0169022 | Bangalore Highway Road, Anantapur |
| Accion Fraterna Trust (AccF) | AP/2017/0167464 | 28493E1, Bangalore Highway, Anantapur |
These organizations share office bearers, similar addresses, operational jurisdictions, and donor networks, strongly suggesting that they may function as shell or Benami entities to evade FCRA oversight. This network raises serious concerns under the Prohibition of Benami Property Transactions Act, 1988, as assets acquired through foreign funds may be held under proxy names. (All the data and evidence presented herein are sourced from the complaint submitted by the Legal Rights Protection Forum (LRPF) to the Ministry of Home Affairs).
Conflict of interest and dual control
Mr. Moncho Ferrer reportedly holds key leadership roles in all three trusts—RDT, RyDT, and AccF—and simultaneously serves as Director in their major foreign donor bodies, Vicente Ferrer Foundation (USA) and Fundación Vicente Ferrer (Spain). This overlapping control represents a clear conflict of interest, concentrating financial and administrative authority and undermining the integrity of FCRA regulatory mechanisms.
Moreover, identical foreign funds have been routed to all four NGOs under ostensibly similar project heads, such as “Education Program Expenditure,” suggesting possible deliberate duplication and layering of funds to conceal their true use.
Duplicity in project declarations and financial misrepresentation
A review of the FCRA annual returns for 2011–12 filed by these NGOs reveals multiple instances of overlapping project declarations. The same projects, such as “construction of field offices” and “purchase of fixed assets,” are reported at identical or very similar addresses across different entities.
A non-exhaustive list of shared project addresses includes:
D.No.9E-79, Mudigallu Road, Opposite HDFC Bank, Kalyandurg, Ananthapur
D.No.1-2-23, Yasodha Garden Main Gate, Pathikonda, Ananthapur
D.No.9-6-33, Guntakal Road, Near Market Yard, Uravakonda, Ananthapur
D.No.1/236/9A, Vajralapeta, Near ADCC Bank, Penukonda, Ananthapur
This repeated declaration of identical door numbers and project sites across multiple NGOs strongly indicates fraudulent misrepresentation, deliberate fund layering, and circular use of foreign contributions. Such acts violate FCRA provisions that prohibit diversion of funds, unauthorized transfers, and mandate transparent utilization strictly for declared purposes.
These patterns point to a sophisticated scheme to inflate project counts and expenditures fraudulently, potentially facilitating tax evasion and masking the true destination of funds.
Strong suspicions of fraudulent fundraising & asset misappropriation by Women’s Development Trust (WDT)
An examination of the FCRA returns reveals that the Women’s Development Trust (WDT) received substantial foreign funds during the financial year 2011–12, ostensibly allocated for projects including “Hospital Program Expenditure,” “Construction of Buildings,” and the “Establishment of Corpus Fund” for so-called “WDT Hospitals” situated in Kalyandurgam and Kanekal areas of Anantapur District, Andhra Pradesh. However, there exists a glaring lack of transparency and absence of verifiable documentation to substantiate that WDT independently owns, manages, or operates any such hospital. This discrepancy raises serious concerns about the bona fides of the stated purpose behind these foreign contributions.
Compounding these suspicions is the discovery that both WDT and the Rural Development Trust (RDT) have showcased identical hospital infrastructure images in their respective Annual Activity Reports and official websites. Notably, the facility is labeled “WDT Hospital” in WDT’s reports, whereas RDT’s materials display the same facility under the “RDT Hospital” banner. This duplication strongly suggests an intentional attempt to mislead regulators and stakeholders, including the Government of Bharat, about the actual ownership and operational control of the facility.
Key pieces of evidence:
- WDT’s Annual Report 2017–18 (featuring the hospital as WDT’s): https://wdtfvf.org/wp-content/uploads/2019/12/WDT-Annual-report-2017-18.pdf
- RDT’s Official Website showing the same hospital at Kanekal as part of the RDT network: https://www.rdthospitals.org/kanekal-hospital-2/
This overlap strongly evidences the misuse of WDT’s foreign contributions for facilities outside its control, suggesting fund diversion to RDT activities in violation of the Foreign Contribution (Regulation) Act, 2010. Such misappropriation and potential benami utilization of funds may constitute grave breaches under the Prohibition of Benami Property Transactions Act, 1988. Furthermore, these misrepresentations raise serious concerns under the Prevention of Money Laundering Act, 2002, and point toward possible tax evasion through concealed assets or income.
Inter-organizational transfers raising red flags
The following table summarizes suspicious foreign fund transfers between the involved entities, extracted from publicly accessible FCRA records: (All the data and evidence presented herein are sourced from the complaint submitted by the Legal Rights Protection Forum (LRPF) to the Ministry of Home Affairs)
| Year | From | To | Amount (INR) | Purpose Stated |
|---|---|---|---|---|
| 2013–14 | Accion Fraterna Trust | Rural Development Trust | ₹50,000 | Unspecified |
| 2014–15 | Rural Development Trust | Women’s Development Trust | ₹9,63,720 | Establishment of Corpus |
| 2015–16 | Women’s Development Trust | Rural Development Trust | ₹23,00,00,000 | Social Purpose |
| 2016–17 | Women’s Development Trust | Rural Development Trust | ₹42,25,355 | Social Purpose |
| 2016–17 | Rural Development Trust | Rayalaseema Development Trust | ₹4,92,900 | Social Purpose |
| 2016–17 | Rural Development Trust | Women’s Development Trust | ₹7,98,872 | Social Purpose |
| 2018–19 | Rural Development Trust | Rayalaseema Development Trust | ₹4,30,795 | Social Purpose |
| 2018–19 | Rural Development Trust | Women’s Development Trust | ₹1,05,255 | Not Stated |
The frequent and substantial inter-organizational transfers—particularly the ₹23 Crore remittance from Women’s Development Trust to Rural Development Trust in 2015–16 for an ambiguously described Social Purpose, lacking clear, auditable documentation, are highly indicative of fund layering and potential money laundering. The opaque purposes and circular fund movements strongly suggest deliberate attempts to obscure the financial trail, warranting a detailed investigation under the Prevention of Money Laundering Act, 2002.
Critical non-compliance: Undisclosed foreign contributions to WDT
The following foreign receipts by WDT, totaling over INR 36 Crore, are particularly alarming due to complete nondisclosure of donor identities and program specifics, violating Sections 18 and 19 of the FCRA, 2010:
| Year | Receipt Date | Amount Received (INR) | Donor | Purpose |
|---|---|---|---|---|
| 2011-12 | 13-03-2012 | 131,964,926.60 | Unknown | Not Declared |
| 2012-13 | 31-03-2013 | 132,154,718.60 | Unknown | Not Declared |
| 2013-14 | 31-03-2014 | 1,418,680.85 | Unknown | Not Declared |
| 2014-15 | 31-03-2015 | 94,903,849.55 | Unknown | Not Declared |
Such extensive undisclosed receipts strongly indicate deliberate concealment of funding sources and purposes, thereby constituting serious statutory violations. This opaque financial operation underscores grave suspicions of money laundering and tax evasion and urgently necessitates Enforcement Directorate scrutiny.
The available evidence indicates multiple prima facie violations, including the routing of foreign funds through benami or proxy entities to evade regulatory oversight; acquisition of immovable assets under associated trusts, suggesting breaches of the Prohibition of Benami Property Transactions Act, 1988; circular fund flows, layered transactions, and opaque financial disclosures consistent with money laundering under the Prevention of Money Laundering Act, 2002; diversion of funds, false reporting, and nondisclosure of foreign contributions in violation of key provisions of the Foreign Contribution (Regulation) Act, 2010 (Sections 7, 8, 14, 17, 18, 19, and 35); and potential tax evasion through inflated or fictitious expenditure claims and asset concealment, contravening the Income Tax Act, 1961.
In view of the above, we earnestly urge the Ministry of Home Affairs to immediately refer this matter to the Enforcement Directorate for a comprehensive, detailed, and time-bound investigation. The ED’s mandate and expertise in probing money laundering, foreign exchange violations, and financial crimes are indispensable to unraveling this complex web of irregularities and bringing all culpable parties to justice.
The Legal Rights Protection Forum (LRPF) stands at the forefront of exposing financial improprieties and institutional misconduct that threaten democratic accountability and equitable development. Through rigorous scrutiny of publicly available data, detailed analyses of inter-organizational fund flows, and persistent advocacy, LRPF plays a crucial role in unveiling opaque financial operations disguised as charitable activities. The meticulous documentation of suspicious transactions, nondisclosures, and asset misappropriations by trusts like WDT and RDT underscores LRPF’s commitment to holding such entities accountable and pushing for legal redressal.
The Legal Rights Protection Forum (LRPF) has consistently demonstrated exemplary dedication and effectiveness in safeguarding the rights and interests of local communities over many years. Their vigilant efforts have been crucial in exposing unlawful activities and protecting cultural integrity. However, it is deeply concerning that certain NGOs, under the guise of humanitarian work and often linked to Christian missionary groups, exploit these rural areas to manipulate vulnerable populations through religious preaching and forced conversions. The suspected illegal misuse of foreign funds by such organizations not only violates legal statutes but also poses a serious threat to the social fabric and cultural identity of local Hindu communities. This underscores the urgent need for a thorough investigation to prevent further exploitation and protect the interests of indigenous populations.
