Rana Ayyub breaks silence on ED, Income Tax probes; says bank statements 'deliberately misread'
Rana Ayyub on Friday issued a statement in response to allegations made against her by the Enforcement Directorate (ED). A senior journalist, Rana Ayyub has been accused by the agency of misappropriating funds received as donations for relief during the Covid-19 pandemic.
The statement issued by Rana Ayyub on Friday said, "It is abundantly clear that no part of the relief campaign fund remains unaccounted for, and there is absolutely no scope for any remote allegation of misuse of the funds for personal expenses.
"Such allegations are preposterous, wholly mala fide and belied by the record, and are a deliberate misreading of my bank statements."
Rana Ayyub's statement goes on to add, "The smear campaign against me will not deter me from my professional commitment to continue to do my work as a journalist, and especially to raise critical issues and ask inconvenient questions, as is my duty as a journalist in a constitutional democracy. I am confident that the allegations levelled against me will not withstand any fair and honest scrutiny.
"For now, since I had raised public money through the campaigns, I am sharing an account of how the public money was spent, in order to assuage any doubts about their use and maintain transparency."
Rana Ayyub saod she started fundraisers on the Ketto platform in April 2020, June 2020, and May 2021 to "aid in providing respite to the most vulnerable and affected people with food grains, rations, and medical assistance".
In her statement, the journalist wrote she was asked by Ketto to furnish details of two bank accounts where donations would be transferred.
"I then explored whether it was possible for Ketto to directly transfer the funds to the grain vendors who were going to provide the supplies for the relief work. However, as the vendors were all required to submit various documents to Ketto, the process could not take off.
"My personal bank account could not be used at that time as Ketto required the physical copy of my PAN card to be furnished immediately, which at that time was unavailable. In these circumstances, as I thought that aid to Covid-19 ravaged families should not be delayed, I gave Ketto the details and documents relating to my father and sister's bank accounts," the statement adds.
Rana Ayyub goes further to say that she regularly posted updates on social media about funds raised by her for relief work.
"I was also aware that a part of the money was donated to the relief campaign by Muslims in India in the month of Ramadan, presumably as Zakaat. As a practicing Muslim, I understand the sanctity of Zakaat and its intended use for those in need," she said.
Rana Ayyub said that this was the same time she contracted Covid-19 and had to be admitted to a hospital.
"My team of volunteers engaged in Covid relief work was also not spared by the virus, and unfortunately, two of my local volunteers succumbed to COVID as the virus was at its peak, and consequently we had to temporarily halt the relief work," read the statement.
Rana Ayyub goes on to write that she had to undergo spine surgery in January 2021, after which the second wave of Covid-19 struck the country and she decided to revive the relief work.
Her statement reads, "I started the relief work again and also started talking to NGOs to set up a medical Covid facility, including to a medical facility introduced to me by Ketto.
"As per Ketto's procedure, all donors to my campaigns made donations to Ketto's bank account, which, after deducting processing charges, would forward the same for the relief campaign to the designated two bank accounts, who in turn would then transfer the entire amount received from Ketto to my bank account."
Rana Ayyub also stated that no foreign donations were made either to her account or those in the names of her father and sister.
"All the donations were received first in Ketto's bank account, who would send the amount for the relief campaign to the designated accounts in Indian currency. My instructions to Ketto were that any money received in foreign currency, should be returned to the donor, and the relief work was carried out with only domestic contributions," she said.
Income Tax Dept
In her statement, Rana Ayyub said she has received several notices from the Income Tax department since June 2021. She wrote, "I responded to all queries with detailed answers supported by documents, bills, invoices, and bank records.
Rana Ayyub also stated that she requested the Central Board of Direct Taxes (CBDT) not to tax the donations received for relief work so that the entire amount could be used for relief work.
Her statement adds, "The Income Tax Department, by an Order dt. 07.08.2021, decided to treat the donations as my 'income' and provisionally attached my father's bank account, my bank account, and a Fixed Deposit which was created towards setting up a field hospital for Covid patients.
"However, after multiple visits to the Income Tax office submitting all documents in substantiation, the authorities decided to de-freeze my bank account and my father's bank account on 06th September 2021, except for the Fixed Deposit. "
Rana Ayyub said she also paid Rs 1.05 crore as income tax on the amount received as donation for relief work.
"It was also informally communicated to me that if I give up my right to appeal against the order to levy tax on the donations, then the IT authorities would also de-freeze the Fixed Deposit," she said in her statement, adding that she has now filed an appeal against the Income Tax department's decision to view the donations as her 'income' and impose tax on it.
Stating that her appeal to the Income Tax Appellate Authority is still pending, Rana Ayyub wrote that she was informed by the Income Tax authorities in Mumbai on February 7 of this year that her Fixed Deposit (FD) has been released from attachment and that she is now "allowed to operate the same".
Enforcement Directorate
In her statement, Rana Ayyub also referred to the probe initiated against her by the Mumbai Zonal Office of the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA).
Rana Ayyub said she submitted all relevant documents, bills, invoices and bank statements to the probe agency.
"By the end of 2021, the FEMA investigation of the Directorate of Enforcement, Mumbai Zonal Office, seems to have ended without any finding or order against me. I was orally informed that the Mumbai Zonal Office is no longer inquiring into the relief campaign," the statement read.
It goes further to add that in December 2021, Rana Ayyub was summoned by the ED's Delhi Zonal-II Office. This was in connection with a Prevention of Money Laundering Act (PMLA) case.
Rana Ayyub wrote, "I presented myself to the authorities and once again shared all information that was asked of me. To my surprise, the questioning was focused more on my journalistic income, particularly from foreign media houses and was made to share my contracts and communications with them. I nevertheless answered all questions comprehensively and substantiated the same with documents.
"It was during the course of being questioned by the ED in Delhi, that I learnt that the entire PMLA proceedings were triggered by the FIR registered in Ghaziabad, Uttar Pradesh by a member of the Hindu IT Cell in August, 2021."
Rana Ayyub said the FIR, a copy of which she accessed from social media, alleges that she "violated FCRA regulations by accepting foreign money".
The journalist added this allegation has been refuted by her bank statements, which demonstrate that she received no foreign donations and that all foreign donations received by Ketto were returned to the donors.
She goes on to write, "The exact same allegation, as is made in this FIR, was the basis for the FEMA proceedings by the Mumbai Zonal Office of the ED, which has since not been pursued after I answered all queries and submitted all documents. I maintain that since I received no foreign contribution as defined under the FCRA, and any income received from foreign sources is on account of my professional fee which is permissible under the FCRA law, I have not committed any offence under the FCRA and the FIR registered by UP Police on such allegations is totally baseless."
PM CARES, CM CARES funds
Rana Ayyub said her efforts to set up a makeshift hospital were taking too long, which is when she decided to donate to a public-funded hospital.
"To that end, I had arrived at an agreement with Save The Children Foundation to donate towards the paediatrics department of Tilak Hospital in New Delhi. I had issued a cheque to the tune of Rs 90 lakhs towards this cause on 20 August 2021.
"However, on 08 September, 2021, I was informed by Save The Children Foundation that the South Delhi Municipal Corporation had refused to accept my donation and the cheque was returned to me."
Rana Ayyub said in her statement, "Since for reasons not communicated to me, the SDMC refused my donation, in order to ensure that the donated amounts were not left unutilised, but were rather used to provide treatment and relief to the affected families in need, I donated INR. 74.50 lakhs to the CM CARES Fund of Maharashtra, for relief work in my home state, and to the PM CARES Fund, for relief work across India.
"The various allegations reported by the media, who seem to be in possession of the Provisional Attachment Order dt. 04.02.2022 of the ED, which I do not have a copy of, are utterly baseless, mala fide and fanciful."
"I have demonstrably shown, before the Income Tax Department, as also before two zonal offices of the ED, that no part of the relief campaign money has been used for any other purpose. It is pertinent that the only unutilised part of the fund, viz. the Fixed Deposit of 50 lakhs, could not be used as it was provisionally attached by the Income Tax Department from 07.08.2021 till 07.02.2022," the statement adds.
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