Madhu Pandit das: Our Pain, Our Anguish

Aug 14, BANGALORE, INDIA — An Address by Madhu Pandit dasa, President, ISKCON-Bangalore, on 28th July, 2009 during the Press Conference at ISKCON Sri Radha Krishna Mandir Bangalore.

httpv://www.youtube.com/watch?v=0WUVunaNlow&hl

Welcome to all of you. Thank you very much for coming here. On this occasion, I would like to dwell on the allegations about diversion of funds from Akshaya Patra to Real Estate activities.

It is actually a totally baseless allegation. The Akshaya Patra Foundation is an independent trust. ISKCON is a separate society which is running this temple. Apart from these, there are various other trusts in connection with various specific activities of this temple.

So the point that we are engaged in property development – this was raised in some sections of the media and also in the Assembly by a Honourable Member of the House. We boldly say, “Yes, and what’s wrong with it?” The relevant question that should be asked is, “For what purpose are we doing it?” Why can’t the trust develop its own properties to generate funds for its own projects? What’s wrong?

History of formation of various trusts

In fact when we got this temple land (Hare Krishna Hill), around 1987-88, we actually started the first commercial activity in order to raise funds for our temple projects. We started with the incense business. We did the business in the ISKCON society name for one year, and then our tax consultants advised us: since the temple is raising donations from the public it’s advisable to separate the activities which are commercial in nature from the ISKCON society, where public donations are collected. So it was at that time, in the year 1992, that we started a separate trust, Goloka Seva Trust and we started doing the incense business in that trust’s name. This incense business is continuing even today. And later on when this temple was inaugurated, we began to see high volume sales of religious paraphernalia (Lord Krishna’s pictures, videos, photo frames, cassettes, devotional music cassettes, etc.) here. And sale of these items attracted sales tax. It was at that time, we created Sankirtan Seva Trust in 1997, to handle the sales of devotional paraphernalia. And then we have started a Krishna prasadam restaurant here in the temple, along with sale of various kinds of prasadam. As this is also an activity involving sales, for this purpose we started a separate trust called ISKCON Charities in 1999.

This is the background of the missionary monks of this temple registering different trusts at different times: in order to keep the activities and funds generated from public donations and funds derived out of commercial activities separate and unmixed.

Is it a sin to think intelligently? Is it a sin to conceive grand projects for the promotion of our culture and heritage?

A few years ago, we conceived the theme park project, Krishna Lila Park. It is a huge project (estimated to cost Rs.350 crores). It was obvious that it has to have a robust financial model. We can’t be collecting donations alone to complete this theme park project. It will take several decades to collect donations from the donors to accumulate such large sums. And that is one of the reasons why no duplication of Disney World-kind of park has ever happened in this country. Relatively small and medium sized amusement parks and entertainment parks have come up in India. But nobody has dared to do the quality of world class theme parks like Disney World and Universal Studios.

We dare to do it, for our culture and our heritage. And this is the financial model we hit upon: to acquire lands next to the proposed Theme Park, before someone else comes and acquires and exploits and derive the benefit of the value enhancement that the Theme Park is bringing. We have acquired about 35 acres of land near the proposed Theme Park and we plan to develop this. And with the revenues generated from this hinterland development we build the Theme Park. So is it a sin to think intelligently? It is for fulfilling our mission. We don’t hesitate to take up such endeavors. What is the taboo on the term ‘real estate’? If you do it ethically, if you do it properly – what’s wrong? And no laws of the country are violated. It is legal and permitted for a trust to engage in business activities as long as the profits of the business are spent towards achieving the objectives of the trust.

What did we do with the money from the residential development (Phase 1)?

Today we have developed and sold 600 apartments in the privately purchased land. (See sketch on page 4). These apartments are not in the land allotted to us by the government. And we have nothing to hide. We have generated a surplus of Rs.75 crores in 3 years from this activity. The first phase of the project is completed. All the apartments are sold. Where did all the money go?

(1) We have repaid the loan from the bank with interest.

(2) We have also paid the Government of Karnataka Rs.12 crores for the theme park land.

(3) We’ve spent more than Rs.15 crores on development of roads, compound wall, filling and building retaining walls. (I invite all of you to visit the site of the Krishna Lila Park. It is an abandoned quarry measuring about 28acres. There were huge rocky pits and we have filled some of them to create terraces. To develop the land is itself a big challenge. People who have seen this Hare Krishna Hill at the time of allotment will also tell you how rocky and barren this hillock was when we got it from BDA!!).

(4) Apart from all these, we have purchased lands in a few places of pilgrimage like Vrindavan, Jagannath Puri, Haridwar and Guruvayoor and also in some important cities like Chennai and Jaipur in order to initiate temple and cultural complex projects.

(5) In addition to all these, we have spent Rs.21 crores in producing a world class animation project on Krishna’s pastimes in Vrindavan. (Little Krishna, a 13 episode series is being currently broadcast on Nick channel. This is a co-production with Big Animation).

As far as the Krishna Lila Park, we have an intelligent plan for setting up a project of monumental proportions, creating a tourism attraction for this state. And that is the reason why the government has come forward to support us. They have supported us by clearing this as a tourism project. The government cannot say that they were not aware of the building of the apartments. The government order issued in connection with this project has all of the details. (We’ve given you a copy of the government order). The government order allows residential development and IT Park as part of the development of this land. Why do we want to do residential development or the IT Parks? Of course that is not our primary interest. But we have got a prime piece of land, we want to develop it and the surplus will go to build the Krishna Lila Park. So all these are mentioned in the government order. So it cannot be said, “Oh, we are shocked why ISKCON is doing apartments?” Actually ISKCON is not doing apartments. A separate trust has been created for this activity and for utilization of the fruits of this activity for religious and charitable purpose. A trust called India Heritage Foundation has been created for this activity with missionary monks of ISKCON-Bangalore as trustees.

It is totally a false allegation that money from donations have been used to build apartments. No, the funds are completely segregated. One trust fund does not get mixed with other trust funds. Even ISKCON’s funds don’t get mixed with other trust funds; what to speak of Akshaya Patra Foundation funds, where government money is involved?

We have not asked any financial grant from the government for the Krishna Lila Park project. We have asked what the government gives to any other industrialist or promoter who comes with a tourism project. The government gives land at 50% of the guidance value for tourism projects as per the Karnataka Tourism Policy. The 28-acre hillock has been given to us on this basis.

This residential development to raise funds for the Krishna Lila Park is very much within project scope in our application to the government. If you read the application that we have made before the government, we never said that we have got huge funds and we are going to invest Rs.350 crores. No. We explained how the Rs.350 crore is going to be raised. We showed them the privately acquired lands next to the proposed theme park land and explained that this is how we’re going to develop.

Structuring each activity through distinct trusts, so that the donation money is never mixed with activities which have a commercial or business orientation, is the professional method of conducting such activities. These commercial activities are meant to raise funds for our core projects like Krishna animation and Krishna Lila Theme Park.

We are not shy of doing business for furthering our sacred mission:

We are not ashamed of doing these business activities. ISKCON is an organization. During our Founder-Acarya, Srila Prabhupada’s days, he instructed his disciples to start a business of incense manufacturing and trading in Los Angeles. It was called Spiritual Sky. This business grew and Spiritual Sky became the largest distributor of incense in the US during the 1970s. With the profits generated out of this business many temples were built in the US. So we’re not shy about doing it. And we will do it ethically. We will pay proper taxes.

This ISKCON temple is probably one of the few temples where sales tax is paid for Prasadam sales and religious paraphernalia sales. Luxury tax is paid for the guest house and for hiring the marriage hall. We are law abiding citizens. Everything is done professionally. And if you take Akshaya Patra, it’s being audited by globally renowned auditors. Akshaya Patra has about 3330 employees all over the country. ISKCON-Bangalore has nearly 900 employees. All statutory requirements like ESI, PF, health insurance, etc is being complied with for their welfare.

Our Pain

Without even one prima facie evidence of misappropriation, it is painful to us that we the missionaries have been suspected. Our missionary monks slog from 3 am in the morning to manage these Akshaya Patra kitchens, collect funds to enhance the meal for the underprivileged children and we have been alleged for misappropriation of funds. We are doing the government’s work! And we are pained that today without an iota of evidence, without a pinch of prima facie evidence a House Committee has been formed. We don’t see it as a problem. We are happy with the outcome. We will open all our books and give them the chance to see everything. We have nothing to hide.

But as far as the common man is concerned it really sends a very wrong signal putting the temple in a bad light. Nobody should be punished or humiliated with a semblance of doubt if there is no prima facie case. Where is one case of misappropriation? Where has one donor complained? Has any donor complained of diversion of funds? No! Yet it is made to sound like a big scam!!

Who are the people who are managing all the funds of the trust whether it is Real Estate or whatever? And for what purpose?

Aren’t there so many Christian missionary organizations on MG Road and elsewhere in the city who are involved in developing their properties for furthering their organization’s purpose? There are hundreds of examples. Prime properties in the city have been developed by different missionaries for the furtherance of the objects of the trust. There is nothing wrong with it!

Hence our involvement in this activity is also for a noble cause, for a grand vision, to create an asset for the state. It is very unfair to mix up Akshaya Patra and Theme Park. It is very, very unfair! We want the House Committee to look into it and see that there was not even a prima facie case.

Just because we are collecting foreign funds, that fact alone does not mean there is misappropriation. Just because the people who are connected to Akshaya Patra are doing a grand Theme park and doing property development to generate funds for a grand project, that alone does not mean there is diversion of funds. It’s just like putting A & B together, which are two distinct activities, just because the same people are behind it. This is very unfair. Where is the evidence for diversion of funds? And as far as those projects are concerned the government is very much aware of that – they have given the land, they have approved the project. The government order says there will be residential development. It is an open book!

And it is alleged that the trustees have amassed wealth out of this real estate activities!! All the trustees have filed a voluntary disclosure of personal assets before the Metropolitan Magistrate. We have nothing to hide. We are missionaries who have dedicated our lives, left our homes, kith & kin, given up our career pursuits – all for the service of God and humanity and are not after creating material wealth for ourselves. And when we are assisting the government in this activity, we are all very much pained by these allegations raised on the floor of the Assembly.

While we appreciate the step taken by the government in constituting a House Committee, we are definitely pained by this. This has caused damage to the reputation of our institution! This is a blemish on us and dharma that we represent! Alas! What a loss!! The common man doesn’t know all these structuring we have done for different activities under different trusts!! Does he know there is a difference between the Akshaya Patra Foundation and ISKCON in terms of finances? Common man doesn’t know that is done so that things don’t get mixed up. When such serious allegations are raised in the Assembly and in the media, what would the common man think? There is something fishy going on. Perhaps people are making money!! They are filling their own personal coffers!! Whereas the truth is that even though it has a business model, it is being run by monks and missionaries. Where is the diversion? Who is taking away all this money? Who is enjoying all this money? First let one case of diversion of funds be shown.

We reiterate that everything in Akshaya Patra is very absolutely clean. Anywhere government grant, anywhere public funds and donations are received, everything is accounted. It is an open book for everyone. Now if anybody wants to see the finances of even our apartment projects, even that we are open. Though we are not bound to! We are not collecting money from the public nor are we getting any grants from the government in the India Heritage Foundation. Still to increase our good will towards the people, because we have nothing to hide, we are ready to open our books to the House Committee. How much profit was created out of this apartment project? Where has every single paisa of that gone? Of course, without prejudicing our right to privacy which is characteristic of every business, but to earn their good will, we will open up everything for them.

And then the House Committee will see for itself that we are clean.

Please do it fast

Our only request to the government is this, “Please do it fast!” The more there is delay, more the people’s mind will think, “What is happening?” This kind of seed of doubt has been put in. As far as our existing supporters are concerned, they have confidence in us. They don’t get disturbed by all this. We have received hundreds of calls and assurances of confidence and support from our donor community. They know us. Our present patrons and supporters are very much aware of our honesty, sincerity and integrity of this institution.

We are an institution that has been functioning since 1978 in this state of Karnataka. Has there been ever a precedence of any of such thing? No!

Whatever the Member of the House has spoken in the Assembly, he enjoys privileges of not being criticized for it. Today whatever we have spoken is not on the basis of what was spoken in the Assembly. Almost every point that was raised by him in the Assembly had been already raised outside the assembly and media had reported them. As far as what happened in the assembly, we only have to express our pain and anguish!

The government may not appreciate our work. But we request that at least they shall not cast aspersions of us. Out of 10 lakh children served by Akshaya Patra, five lakh children are in Karnataka. As we discussed earlier, we started Akshaya Patra program 3 years before the government launched the cooked meal program. There was no cooked mid-day meal program in the state in the year 2000 when Akshaya Patra initiated the program. There was no subsidy from the government. It is not that we thought, “Oh, the government will give money, so let us do some program and siphon off some money.” This is not the way this Akshaya Patra began. The Akshaya Patra Foundation has been doing its work even when government was not giving one paisa for feeding children. The missionary monks begged money from people, collected donations and fed nearly 50,000 children up to 2003, even before the government subsidy was there. We dared to do that.

Among all the other trusts that we have, Akshaya Patra Foundation is the only trust that receives money from the government. And to maintain transparency, we have got five external trustees and while missionaries trustees are only three. They are the majority. The five external trustees like Sri Mohandas Pai and others are important people in the corporate world. They will vouch for the Akshaya Patra accounts. One of them signs the Akshaya Patra balance sheets. So that being the case, to say that money from abroad is collected in the name of Akshaya Patra and then it is used for Real Estate – where is the evidence? Simply one should not throw allegations at innocent people, at those people who are dedicated to serve the country and serve humanity. That is all our pain.

Come what may, all our books are open to the House Committee. Let them see for themselves. But however it is important that we express our deep pain at what has occurred on the floor of the Assembly.

Lastly, we are well aware that ISKCON-Mumbai is behind this maligning campaign against ISKCON-Bangalore since the past nine years. And more fiercely now after recently losing a nine-year-long legal battle seeking to control the properties and funds of ISKCON-Bangalore. ISKCON-Bangalore is a legally independent society registered in Karnataka. The maligning song sung by the MLA to the media is the same song with identical lyrics and tune that ISKCON Mumbai has been singing for the past nine years. The difference is that they found a new and loud singer this time.

Thank you very much!

The contributor of this articles notes that this version has been slightly edited for clarity from the original Address.