The Directorate of Enforcement (ED), Hyderabad Zonal Office, has provisionally attached 12 immovable properties valued at ₹3.58 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with a case involving the Good Shepherd Schools operated by the Operation Mobilisation (OM India) group of charities.
Officials said that the present market value of the attached properties is estimated to be around ₹15 crore. The attachment follows evidence of systematic misappropriation of tuition fees, ancillary charges, and government-funded scholarships by OM India’s key office bearers.
The case stems from alleged large-scale financial fraud and fund diversion under the guise of charitable education for marginalised and Dalit children.
FIR by CID Exposed ₹296 Crore Diversion
The ED initiated its probe based on an FIR registered by the Economic Offences Wing (EOW), CID, Telangana, against OM India entities and their top executives for offences under the Indian Penal Code (IPC), 1860.
The CID’s investigation uncovered an organised financial fraud within Operation Mercy India Foundation (OMIF) and its affiliates, revealing the diversion and misuse of ₹296.6 crore in foreign and domestic donations.
According to the CID’s chargesheet, Dr. Joseph D’Souza, his son Josh Lawrence D’Souza, and other key functionaries diverted funds meant for Dalit education and community upliftment into personal accounts, fixed deposits, and real estate.
Funds received from major international Christian charities — including the Dalit Freedom Network (DFN) in the USA, Canada, and the UK — were allegedly misused for personal gain instead of being utilised for educational and welfare programmes.
Fraudulent Fee Collections and Donor Deception
The ED investigation revealed that Good Shepherd Schools collected regular tuition, book, uniform, and transport fees from students, including those falsely represented as “fully sponsored” under foreign charity programmes.
Simultaneously, the schools received government reimbursements under the Right to Education (RTE) and scholarship schemes, but these amounts were diverted to OMIF’s head office accounts rather than credited back to the students.
Between 2011–12 and 2017–18, fees and subsidies amounting to ₹15.37 crore were allegedly concealed from foreign donors, who were misled into believing that students were being educated free of cost.
A forensic audit revealed large-scale manipulation of student sponsorship data, including duplicate and altered student codes, fabricated names, and modified personal details to inflate the number of beneficiaries shown to foreign donors.
Misuse of Religious and Charitable Funds
The probe found that between 2014–15 and 2016–17, funds recorded for books, uniforms, and transport services were diverted to Good Shepherd Community Society (GSCS) — an entity engaged in religious activities.
The amounts collected directly from students were falsely shown as local donations in GSCS accounts and later utilised for church-related expenditures and purchase of properties.
The investigation further revealed that the diverted funds were used for foreign travel, including business-class trips by senior functionaries, and for creating personal assets through bogus expenses and cash withdrawals.
Key Figures Under Investigation
ED sources stated that Dr. Joseph Gregory D’Souza, who styles himself as the Archbishop of Good Shepherd Churches, exercised complete administrative and financial control over OM India and its network of entities.
His son, Josh Lawrence D’Souza, served as the operational and financial head, managing foreign donations, fund transfers, and donor correspondence.
Investigators found that Dr. D’Souza was also a founding member of several foreign donor organisations, regularly travelling abroad to raise funds, while ensuring their websites were blocked in India to avoid scrutiny.
False “Jogini Rehabilitation” Campaign to Raise Foreign Funds
The ED also unearthed evidence that OM India falsely portrayed ordinary students as “joginis” (sexually exploited temple attendants) to foreign donors to solicit higher sponsorships.
Photographs of unrelated or regular schoolchildren were misrepresented online as victims of sexual exploitation, with no actual rehabilitation programme in place.
Donations under the “Jogini Rehabilitation” category were found to range between USD 60–68 per month, compared to USD 20–28 for standard sponsorships — enabling the group to raise substantially more funds through fabricated narratives.
FCRA Licences Cancelled, Further Probe Underway
Following ED and CID findings, the Ministry of Home Affairs (MHA) — through its FCRA Division — ordered non-renewal of FCRA licences of multiple OM India entities and froze their foreign contribution accounts for violations of the Foreign Contribution Regulation Act (FCRA), 2010.
Despite these restrictions, the group allegedly continued to receive foreign funds via OM Books Foundation (OMBF), disguising donations as commercial payments for printing services.
The ED stated that further investigation is underway to trace additional proceeds of crime, identify beneficiaries, and determine the full scale of the laundering network linked to the OM India group.
