ED attaches ₹3.58 crore assets in Good Shepherd Schools money laundering probe
HYDERABAD: The Enforcement Directorate (ED) provisionally attached 12 immovable properties valued at ₹3.58 crore in connection with a money-laundering investigation into alleged misappropriation of tuition fees, ancillary charges and government-funded schemes at Good Shepherd Schools run by Operation Mobilisation (OM India) charities. ED estimated the present market value of the attached assets at about ₹15 crore.
The agency initiated the probe based on an FIR registered by the Economic Offences Wing of the CID, Telangana, against OM India entities and key office bearers. CID’s chargesheet alleged a diversion of about ₹296.6 crore in foreign and domestic donations received by Operation Mercy India Foundation (OMIF) and affiliated bodies.
CID found large-scale diversion of sponsorship funds
According to CID findings cited by ED, Joseph D’Souza, his son Josh Lawrence D’Souza, and other office bearers diverted funds from foreign donors, including the Dalit Freedom Network, meant for the education and welfare of Dalit and marginalised children. CID said the group claimed to provide free English-medium education but diverted substantial money into private accounts, fixed deposits and real estate.
A forensic audit found manipulation of student data submitted to foreign donors. ED said the data showed multiple student codes for the same child, altered photographs, and inconsistencies in age, caste and gender details.
Government aid allegedly diverted; false entries created
ED stated that Good Shepherd Schools collected regular fees, book charges, uniform and bus fees from all students, including those reported as fully sponsored. Despite receiving government reimbursements under Right to Education and scholarship schemes, these amounts were allegedly diverted to OMIF’s head office instead of being passed on to students. ED identified proceeds of crime worth ₹15.37 crore from diverted collections and subsidies.
The agency also alleged that expenses recorded for books, uniforms and transport between 2014–15 and 2016–17 were diverted to Good Shepherd Community Society (GSCS), which used the money for church-related activities and property purchases.
Foreign travel, bogus expenses and property purchases flagged
ED said diverted funds were routed through affiliated bodies for core activities and for foreign travel, including business-class travel by senior functionaries. Bogus expenses were allegedly created to siphon funds, which were later withdrawn in cash to acquire properties in the names of key officials and entities under their control.
The agency noted that Joseph Gregory D’Souza, described as the Archbishop of Good Shepherd churches, exercised overarching control across group entities, while Josh Lawrence D’Souza managed finances, donor communication and inter-entity transfers.
Websites of foreign donor bodies were found inaccessible from India, which ED suggested may indicate attempts to avoid regulatory scrutiny.
False portrayal of students as ‘joginis’ for higher foreign donations
The investigation also found that ordinary Good Shepherd School students were falsely represented as “joginis” to raise higher sponsorship amounts abroad. ED said donor websites and social media displayed images of unrelated children claiming rehabilitation work that did not exist.
FCRA licences not renewed; foreign funds rerouted through OMBF
Following field verification, the Ministry of Home Affairs refused to renew FCRA licences of several OM India entities and froze their accounts for alleged violations. ED said the group then routed foreign funds via OM Books Foundation (OMBF) using commercial invoices to bypass restrictions.
Further investigation into additional proceeds of crime and the roles of other individuals is underway.
