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In a major crackdown on the Rotary International South Asia Office (RISAO) and the Rotary Foundation of India (RFI), India’s Goods and Services Tax (GST) department has alleged tax evasion totalling over Rs 170 crore across four separate show cause notices.
The controversy, triggered by a complaint from KM Alexander – a lawyer and former vice president of the Rotary Club, Thiruvananthapuram – has sparked scrutiny of RISAO’s financial dealings, and raised questions about possible violations of the Foreign Contribution Regulation Act (FCRA).
Alexander now vows to escalate the matter to the Central Bureau of Investigation (CBI), calling the revelations “the tip of the iceberg” in the alleged corruption within the Rotary network. According to him, “The GST notice itself mentions possible FCRA violations. This calls for a deeper investigation. I will continue pursuing my complaint.”
On June 28 this year, the Directorate General of GST Intelligence (DGGI), Kochi zonal unit, issued three show-cause notices to the RFI. Two days later, on June 30, the DGGI issued a notice to RISAO. The notices, signed by the joint director of DGGI Sreejith M, detailed alleged tax evasion running into several crores across different streams of RFI’s activities.