SC Orders Operational Mobilisation Group To Maintain & Audit Account Statements For Smooth Functioning Of Educational Institutions & Health Centres
The Supreme Court ordered the Operational Mobilisation Group to properly maintain their account statements and get them audited by a chartered accountant for the smooth functioning of educational institutions and health centres.
The Crime Investigating Department (CID) after a long investigation had filed a chargesheet in connection with the alleged misuse of crores of public funds by Operational Mobilisation Group (organization) under
An FIR for allegations under Sections 409, 420, 477(A), and Section 37 of the Foreign Contribution (Regulation) Act, 2010 (FCRA Act) was registered against the organization at the behest of the Economic Offences Wing-CID, following the investigation. The Supreme Court in 2021 granted a stay on the freezing of accounts concerning salary and institutional expenses of the organization.
Justice Vikram Nath and Justice Prashant Kumar Mishra observed, “We dispose of the petitions making the interim order dated 7th April, 2021 absolute, however, with a rider that the petitioners would not only maintain proper and complete statement of accounts but would also get the same audited by a Chartered Accountant and provide quarterly statements of the same to the Investigating Officer or to the Trial Court on regular basis. The pending proceedings before all other forums to continue in accordance with law where it would be open for all the parties concerned to raise all such contentions as may be available under law.”
Sr. Advocates Shyam Divan and Siddharth Dave represented the petitioners.
The organization pleaded to continue utilising their accounts for payment of salary and institutional expenses. Conversely, the State of Telangana acknowledged that the organization operated 103 institutions and over a dozen primary health centers nationwide, supporting the necessity of funds for their operation. They stated the importance of maintaining proper accounts, duly audited by chartered accountants, and making them available to investigating agencies as needed.
While counsel for the private respondents attempted to press contempt charges, the Court refrained from addressing this issue, leaving it open for the investigating agency or the Trial Court overseeing the petitioner's account utilization.
The Court made the interim order absolute, with the condition that the petitioners must maintain proper accounts audited by a Chartered Accountant and provide quarterly statements to the Investigating Officer or the Trial Court regularly.
Accordingly, the Supreme Court disposed of the petition.
Cause Title: Operation Mobilization India & Ors. v. State Of Telangana & Ors. (Neutral Citation: 2024 INSC 275)
Appearance:
Sr. Advocates Shyam Divan and Siddharth Dave; AOR Varun Singh and Aniruddha Purushotham; Advocates Gaurav Nair, Ishwar Ahuja, Rahul Saxena, Bhairavi S N, Arudhra G. Rao, Rohan Andrew Naik, Atharva, Vivek Ram R and Kumar Abhishek
