The Union Home Ministry has suspended the FCRA registration of Delhi-based NGO Centre For Equity Studies for six months over alleged violation of various provisions of the law that allows entities to receive foreign contributions.
According to an order issued by the home ministry, the Foreign Contribution (Regulation) Act, 2010, prohibits acceptance of foreign contribution by correspondents, columnists, cartoonists, editors, owners, printers and publishers of a registered newspaper.
However, it is found that Harsh Mander, the trustee of the NGO, has regularly been writing columns for newspapers and has accepted foreign contribution amounting to Rs 12,64,671 during 2011-12 to 2017-18 as professional receipts/payments from the FCRA account of the NGO, the order said.
When contacted, Mander confirmed he has received the suspension order of the Centre For Equity Studies and described it as "extraordinary".
"It raises questions that are way beyond the specifics of the Centre for Equity Studies. Because what the notice seems to suggest on the one hand is that the work of the kind I do in defence of minority rights and promoting unity between religious communities etc -- speaking and writing on these issues is being described as activity against the sovereignty of the nation.
"Secondly, if you have received remuneration from FCRA funds, you are somehow debarred from writing columns. Both of these are questions that would have to be resolved about what kind of freedom of conscience one does have. Can you stand up in defence of the Constitution and so on. Those are the larger questions the notice raises," he told PTI.
The Centre For Equity Studies has utilised foreign contribution for preparation and publication of reports in which non-FCRA association are one of the authors and such non-FCRA association have not contributed any funds for publication of such reports.
The association has acted as conduit for the transfer of foreign contribution to non-FCRA associations, the home ministry has alleged.
Foreign contribution received by the NGO is reportedly utilised by the Governing Council Members like Biraj Patnaik (Rs 35.69 lakh), Mohd. Anwar UI Haq (Rs 3.65 lakh), Sajjad Hassan (Rs 34.08 lakh), etc, it claimed.
The home ministry said this amounts to violation of section 8 of the FCRA and conditions of registration under section 12(4)(a)(vi) of the Act.
The association has received foreign contributions from various foreign donors who have given funds specifically for the purposes which are beyond the objectives of trust. Utilisation of foreign contribution for such purposes is likely to affect prejudicially the sovereignty and integrity of India, the order said.
Such activities amount to violation of conditions of registration under section 12(4)()i) and (iii) of the FCRA , it said.
The home ministry alleged that the scrutiny of annual returns of financial year 2018-19 to 2021-22 has revealed that incorrect annual returns resulting in mismatch of closing/opening balances between statutory FC4 and Receipt and Payment account have been submitted.
This amounts to violation of association as it has also failed to reply to standard questionnaire (SQ) vide letter dated March 3, 2023, the home ministry said.
"Now, therefore, in exercise of the powers conferred under Section 13 of the Act, pending consideration of cancellation of the FCRA certificate of the association under Section 14 of the Act, the Competent Authority hereby suspends registration certificate No. 231661 130 of the association for a period of 180 days with effect from the date of issue of this order or until further order, whichever is earlier," the order said.
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