ED Launches Major Probe into Dharmasthala's Foreign Funding Amidst Allegations
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- September 03, 2025
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The Enforcement Directorate (ED) has officially initiated a comprehensive investigation into the financial operations of the renowned Sri Kshetra Dharmasthala Rural Development Project (SKDRDP) concerning alleged irregularities in foreign funding. This significant move by the central agency follows a persistent petition filed by social activist K.M.
Vijaya Kumar, who has raised serious concerns about potential violations of the Foreign Contribution (Regulation) Act (FCRA).
According to reports, the ED's Bengaluru zonal office has registered a case under the Prevention of Money Laundering Act (PMLA) and has begun the process of collecting crucial documents and financial records related to the SKDRDP.
The core of the activist's allegations centers on the assertion that the Dharmasthala Trust, through its various projects including the SKDRDP, has been receiving substantial foreign contributions without proper adherence to the stringent FCRA guidelines. Kumar's petition specifically highlights the alleged receipt of funds from foreign entities for purposes that may not align with the declared objectives or without the necessary regulatory approvals.
Reacting to the development, Dr.
L.H. Manjunath, Executive Director of SKDRDP, firmly stated that the organization is fully prepared to cooperate with the ED's investigation. He vehemently denied any illicit financial activities, emphasizing that all foreign contributions received by SKDRDP have been meticulously documented and utilized in strict accordance with both the FCRA and Indian law.
Dr. Manjunath clarified that the funds primarily support various rural development initiatives, self-help groups, and microfinance activities across Karnataka, all aimed at empowering rural communities and promoting self-reliance.
This is not the first instance where the Dharmasthala Trust has found itself under scrutiny.
The social activist's petition to the ED also drew connections to the ongoing controversy surrounding the 2012 rape and murder case of Sowjanya, which has seen previous investigations by the CBI and state police. While the two issues are distinct, the activist’s appeal implies a broader call for transparency and accountability within the influential institution.
However, the ED's current focus is specifically on the foreign funding aspect, aiming to ascertain whether any money laundering or FCRA violations have indeed occurred.
The probe is expected to involve a thorough examination of bank statements, transaction histories, donor details, and the utilization of foreign funds over an extended period.
The outcome of this investigation could have significant implications for the SKDRDP, an organization that plays a pivotal role in the socio-economic landscape of Karnataka, known for its extensive network of self-help groups and welfare programs.
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