The Charity Commission has suspended a trustee and opened a statutory inquiry to investigate "improper" activity at Sikh charity The Khalsa Missionary Society.

Concerns were first raised by the Home Office who suspected the Manchester-based charity of sponsoring Indian nationals who entered the UK as religious workers but then disappeared.

The regulator said it will examine whether the charity was set up and registered with the Commission for an “improper” or “non-charitable purpose” and if the charity is operating for the public benefit.

It will also examine if the charity’s trustees have personally benefited from donated funds and whether those funds have been "misapplied" for an improper purpose.

In a statement this morning, the Commission said: "The regulator has exercised its powers under section 76 of the Charities Act 2011 and suspended one of the charity’s trustees.

"The purpose of an inquiry is to examine issues in detail and investigate and establish the facts so that the regulator can ascertain whether there has been and/or the extent of misconduct and mismanagement; establish the extent of the risk to the charity’s property, beneficiaries or work; decide what action needs to be taken to resolve the serious concerns, if necessary using its investigative, protective and remedial powers to do so."

The Khalsa Missionary Society was approached by Civil Society News for comment but did not respond.