Interim report on Akshaya Patra submitted, more details sought from EY, KPMG

A two-member committee was formed on November 20 last year to look into alleged irregularities in the foundation’s workings

A two-member committee headed by former Central Vigilance Commissioner (CVC) of India KV Chowdary has submitted its interim report on allegations made by former trustees of the Akshaya Patra Foundation.

Akshaya Patra Foundation gets grants from multiple state governments and the union government to provide midday meals for school children. (Representational image.)

However, the committee has sought a report from statutory auditors—EY and KPMG—for additional details, according to the foundation.

“The interim report has been submitted by the committee but the committee has sought (a) report from the statutory auditors EY and KPMG. This report is expected in the month of march,” according to a spokesperson of the foundation.

A two-member committee was formed on November 20 last year to look into alleged irregularities in the foundation’s workings, including the non-maintenance of records of related parties using the kitchens of the foundation for uses other than the government-sponsored midday meal programme.

A letter by Suresh Senapaty, former Wipro chief financial officer and a former member of the audit committee at Akshaya Patra Foundation, last year alleged, among other issues, that costs per meal are far higher than any other organisation for a similar offering.

“Any amount of questioning/review didn’t yield any result because the individual kitchens are run by missionary unit presidents who never demonstrated their accountability to the Akshaya Patra organisation,” according to the letter.

Akshaya Patra Foundation, which gets grants from multiple state governments and the union government to provide midday meals for school children, serves over 1.8 million meals a day through 52 kitchens across 12 States and two Union Territories of India.

The allegations have been largely directed at Madhu Pandit Dasa, the chairman of the Akshaya Patra Foundation and Chanchalapathi Dasa, the vice-chairman, and people associated with them that raised several questions against the very workings of the Akshaya Patra.

“After due investigation, in almost all cases, it has been established that there has been wrongdoing on the part of Unit Presidents and / or other missionaries,” the letter states.

People aware of the developments had stated that only a transparent audit would reveal the true extent of irregularities.

The total income of Akshaya Patra Foundation in 2018-19 (most recent published report) was ₹52,118.33 lakh and the organisation incurred an expenditure of ₹51,627.02 lakh. The public trust has total assets worth ₹43,967.74 lakh, according to details in the 2018-19 annual report.

The organisation is reported to have received over ₹247 crore from the government and over ₹352 crore from donations in the previous fiscal.

“Some (statements) are suggestions made, implemented that the previous board did not know, some might be baseless and some have merits that the new audit committee has said,” said one person aware of the developments, requesting not to be named.

The final report is expected in March