Serious Problem With Fr. Gali Arulraj

Notice for the Media and the Indian Authorities

Fr Gali Arulraj, with the assistance of his nephew, Fr Vatakili Paulinraj, embezzled hundreds of thousands of pounds (approx. 3-4 crore rupees) from charity funds over the course of several years, to enrich themselves and to provide properties and expensive lifestyles for Arulraj's mistresses and children. Arulraj and Paulinraj embezzled funds that Enable had donated to the Dayananda Nilayam Society for Social Development (DNSSD), of which Arulraj was the President/Director and Paulinraj the Treasurer/Secretary.

The embezzlement occurred in spite of Enable's very careful monitoring of funds sent to India. Representatives of Enable visited the projects in Ongole, AP, at least once each year. During visits in January each year they reviewed informal accounts of the DNSSD for the previous calendar year January to December, and Enable received the DNSSD's formal certified accounts for each year ending 31 March. These accounts were certified by Mr P.V. Ranganaadham, FCA, of Sri Sai Gayathri, Door NO: 32-1-57, Opp. Old Employment Exchange, Old Govt Hospital Road, Ongole - 523 001, AP.

In addition to this, an official from Enable examined the DNSSD's accounts materials for the period April 2002 to March 2006 in an attempt to verify the reliability of the accounts. The materials included the set of bank statements for this four year period signed by the bank manager of the Indian Overseas Bank, Ongole. When an Enable official met the bank manager in April 2006, he confirmed that it was his signature on the bank statements.

Since June 2006, it has come to light that Ranganaadham and the bank manager had conspired with Arulraj and Paulinraj, and that they had produced fraudulent accounts and bank statements in order to deceive Enable.

The DNSSD is a registered society under the Indian Societies Registration Act (reg No. 49/1988). It is obliged to submit annual returns to the Registrar of Societies in Ongole. After the police investigation against Arulraj and Paulinraj began on 17 June 2006,  it came to light that DNSSD had not submitted its annual returns for the past 8 years. Some days later, knowing that the continued registration of their Society was in jeopardy, they submitted clearly fraudulent annual returns, and woefully inadequate minutes of alleged meetings to the Registrar of Societies.

Enable is appealing to the Registrar of Societies to review and reject these returns, especially as they were presented after a criminal investigation had started. Apart from failing to comply with the requirements of the Societies Registration Act, the obvious criminality of Arulraj and Paulinraj (and other recently-named trustees who are conspiring with them to pervert the course of justice) should be sufficient for the Registrar of Societies to cancel the registration of DNSSD.  As the Registrar of Societies has not taken this action personally, we have appealled to the District Collector and Magistrate of Prakasam District to intervene.

In December 2006, the Ongole police obtained evidence that Arulraj had given a considerable sum of money to an accomplice in Ongole, to be used as bribes to influence officials in various departments investigating the affairs of the DNSSD.   This may well explain why a large file went missing from the income tax office in Guntur, why the Delhi authorities have still not cancelled the DNSSD's FCRA permit to receive funds from overseas, and why the DNSSD's registration has not been cancelled.

We ask that the Indian authorities take just and prompt action against the DNSSD. This is necessary to remove any concerns as to whether officials in the various departments mentioned above have take bribes. It is especially necessary if confidence is to be restored to the international community who are attempting to assist India's development.

The extent of the DNSSD's deception--involving a member of the Federation of Chartered Accountants and a bank manager--is alarming. The Indian authorities must restore confidence without delay.

For legal and other reasons it is not possible to publicize everything that Enable is doing to remedy the problem caused by Gali Arulraj. Some information is provided in our News Updates....

The Hindu, one of India's two main national newspapers, has reported on the misappropriation of Enable funds

Fr Gali Arulraj-- a warrant has been issued for his arrest

Since 1995, Enable has worked in partnership with the Dayananda Nilayam Society for Social Development (DNSSD), a charitable organisation formed by Fr Gali Arulraj in 1988. Since its inception he has been its President and Director.

On 31 May 2006, Enable asked Fr Arulraj to resign from his positions within the DNSSD for two reasons. The first was that he refused to allow Enable (which provides nearly 99% of the funds of the DNSSD) to arrange for an independent audit of the DNSSD accounts, when there were indications of serious irregularities suggesting a considerable misappropriation of funds. The second was his decision to close the centres from the beginning of the new academic year (12 June), thereby abandoning the children Enable had undertaken to support.

Fr Arulraj’s nephew, Fr V. Paulinraj was the Secretary and Treasurer of the DNSSD from 1995 until he resigned unexpectedly on 25 May 2006.

On 10 June, Enable’s General Secretary, Colin Harte, made an emergency visit to India, staying in Ongole from 14-20June. While he was there he visited the “Enable Centre for Disabled Children” (opened in January 2006), and found it to be completely locked up. He learned that children arriving for the beginning of the academic year had been turned away. At the “Alison Davis Home for Disabled Children” (named after Enable’s Chair, Alison Davis), there were a few girls, mainly children of the staff.

Since April 2006, Enable has discovered that Fathers Arulraj and Paulinraj have deceived it, and that they have told it outright lies. One lie was that, as Catholic priests, they had been engaged in work to benefit disabled children with the permission of their bishop. On 5 June, their bishop, Most Rev. Dr P. C. Balaswamy of the Diocese of Nellore informed Enable that the priests had been working contrary to his express directives, and that they had neglected the work he had assigned to them. After Colin Harte returned from India, Enable was contacted by concerned sponsors informing them that they had received a letter from Fr Arulraj asking for donations to be sent directly to him. In his letter, which was dated 11 June, Fr Arulraj said that the centres were open and functioning. Colin Harte, who visited the centres with senior priests from the Diocese of Nellore during the week after Fr Arulraj wrote his letter, was able to confirm that this was untrue.

Looking after the locked-up Centre: No one at the Enable Centre apart from two watchmen [15 June 2006]

Bishop P. C. Balaswamy, pictured with Colin Harte, has given his full support to Enable [20 June 2006]

During Colin Harte’s visit to India, many local people, appalled by the abandonment of the disabled children by Fr Arulraj, came forward to assist Enable. In addition to the considerable support given by Bishop Balaswamy and senior priests working on his behalf, particular assistance has been given by Mr G Jayaramaiah, the Secretary of an Ongole-based charitable organisation, Sree Madhava Vidya Peetham. With further evidence emerging, which points to considerable misappropriation of funds by Fathers Arulraj and Paulinraj, the police began an investigation. The two priests have absconded in order to avoid questioning—an action that reinforces suspicions about their actions—and the Ongole police have issued warrants for their arrest.

Enable’s principal concern is for the children who have been abandoned by Fr Arulraj while the centres remain locked up and empty. Enable is appealing to the Indian authorities to allow us to appoint responsible people to take charge of the centres so that they can be used for the purpose they were constructed—caring for disabled children.

The needs of the children are great and it is scandalous that the children have been abandoned while the properties remain locked up and empty.

It is inconceivable that any organization will now fund Fr Arulraj and the DNSSD. Certainly, the DNSSD can no longer afford to run the institutions. If Fr Arulraj has an ounce of decency left in him, let him hand over the buildings—which were constructed with Enable’s funds—to Enable without any delay. With the support of Bishop Balaswamy and other decent people, Enable will be able to continue to provide the care and support that it has given for many years.

[January 2006] Enable's founders, Alison Davis and Colin Harte with some of the residents of the Enable Centre. Enable is working hard to ensure that these and the other children abandoned by Fr Arulraj receive the care they need.