UK's Charity Commission Friday opened a statutory inquiry into the Hindu Community Society over alleged economic irregularities and failure to file its financial accounts.
The independent charities watchdog said the Society's stated aim was to benefit the Tamil community in Coventry in central England, particularly by advancing the Hindu religion.
"The Commission has serious regulatory concerns regarding the management and governance of the charity. Despite being previously included in a class inquiry in 2017 for failing to file its financial accounts, the charity's trustees have failed for the sixth consecutive year to submit the charity's annual financial information on time," Charity Commission said.
"Additional concerns arose around the potential loss of 500,000 pounds of charity funds spent on a leased property, from which the trustees were subsequently evicted. The Commission also has concerns about potential private benefit arising from payments made to trustees for employment within the charity," it said in a statement.
The inquiry had been opened back in June 2017 to examine serious concerns of potential misconduct and mismanagement at the charity, but the Commission was unable to proceed as Hindu Community Society was facing a separate tax-related investigation by Her Majesty's Revenue and Customs (HMRC).
As the tax investigation has now closed, the Commission said it will now proceed with its investigation.
The inquiry will examine the extent to which the trustees are complying with their legal duties to administer, govern and manage the charity, in particular their compliance with legal obligations to prepare and file the charity's annual financial information.
It will also examine the extent to which the trustees have complied with previously issued regulatory guidance.
It will explore if a properly appointed board of trustees is exercising proper and adequate oversight of the charity's affairs, in particular whether the trustees have avoided or adequately managed potential conflicts of interest and whether there has been any direct or indirect benefit.
The Commission will also probe the trustees' decision making regarding the expenditure on property leased by the charity.
After it has concluded the inquiry, it will publish a report detailing what issues it looked at, what actions were undertaken as part of the inquiry and what were the outcomes.
The watchdog has a remit to regulate charity trustees' compliance with the UK's charity law framework and breach of duties can lead to appropriate legal action.
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