CHENNAI: A non-governmental organisation (NGO), which was registered as a society in Chennai, has shut shop after it was found to be diverting funds from the US received for welfare of children, towards other purposes.

Caruna Bal Vikas, operating from Purasawalkam in north Chennai for more than 15 years, was getting around 100 crore from US-based Compassion International every year.

Around 10% of the money was used by the NGO towards its use and the rest was diverted to 300 organizations in Tamil Nadu, Kerala and other states, an official of the income tax department said.

Individual donations of $20 were collected in the US towards 'adopting' an under-privileged child.

After keeping some amount for itself, Compassion International sent the rest to Bal Vikas, which in turn diverted the money to its 'child development centres'. "The children were made to write letters to the donor in US, who is said to have adopted them. On their birthdays and other special days, the centres gave them presents telling them it was given by the adopted person," said the official.

The I-T department, which was monitoring the NGO, issued a notice after it was found that since March 2013, the NGO was diverting the money for other purposes, allegedly including religious conversions.

A senior I-T official told TOI on Sunday that these 300 organizations, christened as child development centres, approached families living in slums or other low-income areas and told the parents that their children have been 'adopted' by a donor in the US. The kids were supposed to be supported with the money from the donor. There were around 30,000 children supported by these centres, said the official.

After issuing of notices to the NGO, the IT department raised income tax demands for assessment years 2010-11, 2011-12 and 2012-13 at Rs 28.59 crore, Rs 30.20 crore and Rs 28.91crore. Following this, the NGO was closed down and instead, a registered company called Adhane Management Consultants Pvt Ltd was formed. The CEO of Caruna Bal Vikas, Aswin Paul is also the CEO of the new company and similarly all other officials from the NGO are also part of the company. Efforts to contact Aswin failed.

"At present all our notices are being received by Aswin as power attorney for the NGO. The office of the NGO is shut down. Since Adhane is a company, we will not be able to monitor it but will be writing to the home ministry about this issue," said the official.

