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NRI deaths: Lakhs raised with crowdfunding don’t reach kin | Hyderabad News
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HYDERABAD: A string of NRI deaths, especially in the US in recent times has brought to light the dark side of crowdfunding. Families of some of the deceased that TOI reached out to said how, in the name of shipping home the mortal remains, ‘middlemen‘ raise big bucks by floating crowdfunding pages.
In many cases these ‘middlemen’ – usually an acquaintance – either siphon off the entire amount or hand out just a paltry sum to the family.
On an average, it costs about USD 5,000 (Rs 4 lakh approx) to send a body back to India from a foreign country, say members of social organisations. The price could be higher depending on a family’s urgency. Interestingly, though, the money raised is often many times higher than this amount.
A simple search on a popular American crowdfunding platform throws up over 500 results of such arrangements, with some of them found raising over $50,000 to help a family back home get a dear one’s body.
“In our case, however, we just got Rs 4.5 lakh, even though my son’s friend raised over USD 8,000 (Rs 6.6 lakh) from a page he started,” said Peddapalli resident Rajamouli V who lost his elder son on November 27, 2023.
‘Lack of monitoring key concern about crowdfunding’
The 23-year-old had completed his master’s and was working in California. Incidentally, the family said that an organisation in the US helped them get the mortal remains free of cost. “Yet, despite asking the friend multiple times to help me with the pending amount, as I have debts of over 10 lakh, he refused,” said the 66-year-old distraught father. “I lost everything, including my son. I am now debt-ridden and struggling to survive,” he added.
The reason for his son’s death remains unknown.
Social groups and individuals working closely with the diaspora in the US say how crowdfunding has become the go-to option for assistance in case of death or any trouble. And while there are a lot of genuine people seeking help, there’s misuse as well. “Recently, a wealthy Indian national died in Boston. He was earning about 25 crore per annum, had multiple properties and no liabilities. However, 4 crore was raised for his family. There is no account of how that money was used and by whom,” said a businessman from Boston familiar with the case.
The lack of monitoring is a key concern, feel members of Team Aid, an organisation dedicated to assisting individuals in crises abroad. “Anyone can start a page. And to withdraw money, all one needs is a government ID,” said a volunteer from the organisation.
Given such frequent cases of misuse, families are now becoming careful. “When my relative died his friends contacted us to start such a page. I gave them my consent but asked them to use the bank details of a close friend. Now, 23 lakh, which is sufficient to clear the education loan, has been transferred into his father’s account,” said the relative of a student who died in the US last month.
In the case of another student, who died due to drowning in Florida recently, the family received 35 lakh using the same means.
To curb such malpractices to some extent, voluntary organisations are coming forward to help families in distress with the paperwork and finances. “We send around 8 to 10 bodies to India from the US, UK, Canada, among other places every week,” said Mohan Nannapaneni, founder, Team Aid. He said they have members in every state and offer their services free of cost to the needy.
In many cases these ‘middlemen’ – usually an acquaintance – either siphon off the entire amount or hand out just a paltry sum to the family.
On an average, it costs about USD 5,000 (Rs 4 lakh approx) to send a body back to India from a foreign country, say members of social organisations. The price could be higher depending on a family’s urgency. Interestingly, though, the money raised is often many times higher than this amount.
A simple search on a popular American crowdfunding platform throws up over 500 results of such arrangements, with some of them found raising over $50,000 to help a family back home get a dear one’s body.
“In our case, however, we just got Rs 4.5 lakh, even though my son’s friend raised over USD 8,000 (Rs 6.6 lakh) from a page he started,” said Peddapalli resident Rajamouli V who lost his elder son on November 27, 2023.
‘Lack of monitoring key concern about crowdfunding’
The 23-year-old had completed his master’s and was working in California. Incidentally, the family said that an organisation in the US helped them get the mortal remains free of cost. “Yet, despite asking the friend multiple times to help me with the pending amount, as I have debts of over 10 lakh, he refused,” said the 66-year-old distraught father. “I lost everything, including my son. I am now debt-ridden and struggling to survive,” he added.
The reason for his son’s death remains unknown.
Social groups and individuals working closely with the diaspora in the US say how crowdfunding has become the go-to option for assistance in case of death or any trouble. And while there are a lot of genuine people seeking help, there’s misuse as well. “Recently, a wealthy Indian national died in Boston. He was earning about 25 crore per annum, had multiple properties and no liabilities. However, 4 crore was raised for his family. There is no account of how that money was used and by whom,” said a businessman from Boston familiar with the case.
The lack of monitoring is a key concern, feel members of Team Aid, an organisation dedicated to assisting individuals in crises abroad. “Anyone can start a page. And to withdraw money, all one needs is a government ID,” said a volunteer from the organisation.
Given such frequent cases of misuse, families are now becoming careful. “When my relative died his friends contacted us to start such a page. I gave them my consent but asked them to use the bank details of a close friend. Now, 23 lakh, which is sufficient to clear the education loan, has been transferred into his father’s account,” said the relative of a student who died in the US last month.
In the case of another student, who died due to drowning in Florida recently, the family received 35 lakh using the same means.
To curb such malpractices to some extent, voluntary organisations are coming forward to help families in distress with the paperwork and finances. “We send around 8 to 10 bodies to India from the US, UK, Canada, among other places every week,” said Mohan Nannapaneni, founder, Team Aid. He said they have members in every state and offer their services free of cost to the needy.
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