Prosecution Of Fake Ngos And Fraudulent Charitable Organizations
Prosecution of Fake NGOs and Fraudulent Charitable Organizations in Bangladesh
Fraudulent NGOs and charitable organizations exploit public trust and donor funds, often defrauding individuals, corporations, and foreign agencies. Prosecution typically involves:
Relevant Legal Provisions
Penal Code, 1860
Section 420: Cheating and dishonestly inducing delivery of property
Section 406: Criminal breach of trust
Section 409: Criminal breach of trust by public servants or agents
Section 120B: Criminal conspiracy
Section 34: Acts done by several persons in furtherance of common intention
Companies Act, 1994 / Societies Registration Act, 1860
Fraudulent registration or misuse of NGO license
Anti-Money Laundering Act, 2012
Misappropriation of funds and laundering donor money
Case 1: Fake NGO in Dhaka Collecting Foreign Donations (2015)
Facts: A so-called charitable organization registered as an NGO collected donations from foreign sources claiming to support education and healthcare. Investigations revealed that funds were diverted to private accounts.
Legal Issue: Cheating Section 420, criminal breach of trust Section 406, criminal conspiracy Section 120B.
Court Action: Police filed FIR; directors arrested and remand obtained. Court convicted 3 directors, sentencing 5–7 years imprisonment and confiscating assets.
Significance: Demonstrates accountability for misuse of donor funds by fake NGOs.
Case 2: Sylhet Health Charity Scam (2016)
Facts: A registered NGO solicited funds for building hospitals in rural areas but invested donations in personal business ventures.
Legal Issue: Criminal breach of trust Section 406, cheating Section 420, misappropriation of charitable funds.
Court Action: Police investigation revealed falsified project reports. Courts convicted NGO head, sentenced to 6 years imprisonment and imposed fines.
Significance: Shows that false reporting and diversion of funds are punishable offenses under Penal Code.
Case 3: Rajshahi Relief Fund Fraud (2017)
Facts: A fake relief organization collected emergency aid for flood victims but distributed only a small fraction of resources while embezzling the rest.
Legal Issue: Cheating Section 420, criminal breach of trust Section 406, conspiracy Section 120B, misleading public under Companies/Societies Act.
Court Action: Police arrested 4 key members; courts sentenced 5–8 years imprisonment and ordered recovery of embezzled funds.
Significance: Highlights fraudulent NGOs exploiting natural disasters for personal gain.
Case 4: Fake Orphanage Organization in Chittagong (2018)
Facts: The NGO claimed to support orphaned children, soliciting donations via social media and events. Investigations revealed there were no children, and funds were misused.
Legal Issue: Cheating Section 420, criminal breach of trust Section 406, unlawful fundraising under Societies Act.
Court Action: Police registered FIR; directors arrested. Court sentenced 3 organizers to 7 years imprisonment and confiscated bank accounts.
Significance: Illustrates prosecution of fraudulent charitable organizations exploiting emotional appeals.
Case 5: Dhaka Foreign NGO License Scam (2019)
Facts: Individuals illegally registered NGOs under false pretenses to obtain foreign aid. Funds were siphoned off through multiple accounts.
Legal Issue: Cheating Section 420, criminal breach of trust Section 406, forgery Section 468, conspiracy Section 120B.
Court Action: RAB investigation led to arrests; courts sentenced 5 people to 8 years imprisonment and froze NGO accounts.
Significance: Highlights systemic fraud exploiting foreign aid regulatory loopholes.
Case 6: Online Charity Scam During COVID-19 (2020)
Facts: A fake COVID-19 relief NGO collected donations via social media claiming to provide PPE kits and oxygen support. Victims reported no aid received.
Legal Issue: Cheating Section 420, criminal breach of trust Section 406, digital fraud under DSA Section 21.
Court Action: Police Cyber Unit investigated; ringleaders arrested and charged. Courts sentenced two main operators to 5 years imprisonment.
Significance: Demonstrates criminal liability of fake NGOs using digital platforms for fraud.
Key Observations Across Cases
Patterns of Fraudulent NGOs:
False claims to solicit donations
Misuse of funds for personal gain
Falsification of reports or beneficiaries
Use of both physical and digital platforms
Legal Provisions Often Invoked:
Penal Code: Sections 420, 406, 409, 120B
Societies Act / Companies Act: Unlawful registration or misreporting
Digital Security Act (DSA): For online fundraising fraud
Court Trends:
Courts consistently emphasize punishment to protect public trust in charitable organizations.
Recovery of embezzled funds and imprisonment are common outcomes.
Digital channels increase scrutiny under DSA.
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