Educational Fraud Uncovered: Organization Falsely Claimed Students Were Sexually Abused to Attract Higher Foreign Donations

New Delhi: The Enforcement Directorate (ED) has uncovered that a Hyderabad-based educational organization allegedly misappropriated Right to Education funds and obtained foreign donations through false representations of regular students as 'joginis,' sexually exploited temple attendants.

On Tuesday, the ED announced the attachment of twelve immovable properties with an estimated market value of Rs 15 crore belonging to Operation Mercy India Foundation (OMIF), which operates the Good Shepherd Schools program primarily serving underprivileged students.

OMIF has not yet responded to these allegations.

According to the ED, these schools collected standard fees, including charges for books, uniforms, and transportation from all students, even those portrayed as fully sponsored, thereby generating what the Prevention of Money Laundering Act (PMLA) defines as "proceeds of crime."

The ED further claimed that despite receiving substantial government assistance through Right to Education (RTE) and scholarship programs, the schools charged students full fees. Instead of reimbursing students, government funds were reportedly diverted to OMIF's head office accounts.

Between the fiscal years 2011-12 and 2017-18, the agency stated that significant amounts collected from students and received from government sources were hidden from donors who believed they were funding free education.

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

The investigation revealed that OMIF misrepresented ordinary school students as "joginis" to foreign donors to solicit higher sponsorship amounts. Images of regular students and unrelated children were allegedly uploaded to donor websites and social media platforms, falsely portraying them as 'joginis.'

The agency discovered that donations for "jogini rehabilitation" commanded between USD 60-68 per month, substantially higher than the USD 20-28 per month for regular student sponsorship, resulting in increased fundraising based on false representations.

Additionally, the ED alleged that Good Shepherd Community Society (GSCS), a group entity involved in religious activities, utilized fees paid by parents for church-related expenses and property acquisitions.

The investigation further uncovered that the accused diverted funds to affiliated entities for their core operations and used them for extravagant foreign travel by senior officials, including business-class air travel for key functionary Dr. Joseph Gregory D'Souza.

According to the agency, OMIF received significant foreign sponsorship funds intended for the education of students from Dalit and other marginalized communities, as well as for construction and operational expenses related to the schools.

The ED also noted that the Ministry of Home Affairs (MHA) has ordered the non-renewal of Foreign Contribution Regulation Act (FCRA) licenses for multiple OM India entities and frozen their accounts.