New Delhi, Dec 9 (PTI) A Hyderabad-based education outfit has allegedly been found to be misappropriating RTE funds, getting foreign donations by misrepresenting ordinary students as 'joginis' and diverting funds for extravagant foreign travels, the ED said on Tuesday.

The Enforcement Directorate, in a statement, said after some searches, it attached a dozen immovable assets, commanding a market value of Rs 15 crore, of the Operation Mercy India Foundation (OMIF) that runs the Good Shepherd Schools programme, largely for the under-privileged students.

A response from OMIF on these allegations is awaited.

The ED alleged that these schools collected regular fees, book charges, uniform and bus fees from all students, including those represented as fully sponsored, thereby generating "proceeds of crime" as defined under the Prevention of Money Laundering Act (PMLA).

The schools also received "substantial" government aid under Right to Education (RTE) and scholarship schemes, yet students were charged full fees, and government reimbursements were "diverted" to OMIF's head office accounts rather than being reimbursed to students, the ED claimed.

Between 2011-12 and 2017-18, "significant" amounts collected from students and received from government sources were concealed from donors who believed they were funding free education, it said.

"ED has identified Rs 15.37 crore as the proceeds of crime arising out of diversion of such student collections and government subsidies," the agency said.

The group, as per the ED, misrepresented ordinary school students as "joginis" (sexually-exploited temple attendants) to foreign donors to "solicit" higher sponsorship amounts.

It was found that images of regular students and unrelated kids were uploaded on donor websites and social media, portraying them as 'joginis'.

Donations for "jogini rehabilitation" ranged from USD 60-68 per month as compared to USD 20-28 per month for regular student sponsorship, resulting in higher fundraising based on "false" representations, the agency found.

It was found that a group entity engaged in religious activities, Good Shepherd Community Society (GSCS), used the fees paid by parents for church-related expenditures and acquisition of immovable properties, ED alleged.

Probe found, as per the ED, the accused "diverted" funds to affiliated entities for their "core" activities and used them for "extravagant" foreign travel of senior functionaries, including business-class air travel by key functionary, Dr Joseph Gregory D'Souza.

OMIF received "significant" foreign sponsorship funds for the education of students from Dalit and other marginalised sections and other ancillary expenses related to the construction and running of the schools, as per the agency.

It said the Ministry of Home Affairs (MHA) has also ordered non-renewal of the FCRA (Foreign Contribution Regulation Act) licence of multiple OM India entities and also frozen their accounts. PTI NES VN VN

Hyderabad education outfit accused of diverting RTE and donor funds and generating proceeds of crime under PMLA. The Enforcement Directorate alleges that Operation Mercy India Foundation charged regular fees to students represented as fully sponsored, diverted RTE and scholarship reimbursements to its head office, and thus generated proceeds of crime under the PMLA, identifying Rs 15.37 crore as proceeds and attaching immovable assets valued at about Rs 15 crore.