Ibrahim Ahmad Ali, owner of UAE-registered firm Universal Lubricants LLC., set up Kuniya College of Arts and Science at his native Kuniya village in Kasaragod in 2023. The college functioned under the banner of Kunhahmed Musliyar Memorial Trust, through which he routed money to fund the institution located on a 100-acre campus.

The trust, however, is not registered under the Foreign Contribution Regulation Act (FCRA), 2010, says the Directorate of Enforcement, which has launched an investigation into the alleged breaching of India’s foreign exchange and foreign contribution laws. The directorate has also confirmed that the Kunhahmed Musliyar Memorial Trust does not have the permission from the Union Home Ministry and that it has not maintained a FCRA bank account to get overseas funds.

Despite being affiliated to Kannur University, the manner of receiving funds is in violation of key provisions of both the Foreign Exchange Management Act (FEMA), 1999, and the FCRA.

It was also found out by the directorate that Ali had sent ₹2.49 crore in cash to the trust, which certainly violated FEMA provisions.

While investigation is underway, ledger accounts on unsecured loans, and a hard drive containing financial records, have been seized.

Though the money has come from Ali’s wealth to build his own educational institution, the fact that legal procedures mandatory for overseas funding have not been followed stands true, according to the Enforcement Directorate. – editor@nrifocus.com