File photo of activist Teesta Setalvad
The government has asked the CBI to investigate an organization linked to activist Teesta Setalvad, known for her campaigns for Gujarat riot victims.
Top home ministry officials say Sabrang Communication and Publishing has received $2.9 lakh from the US-based Ford Foundation but not informed the government as required by the Foreign Contribution Regulation Act.
The company also received another Rs 1.3 crore without clearance from the Sabrang Trust and Citizen for Peace and Justice, two NGOs with which Ms Setalvad is associated.
The home ministry has ordered the company's accounts to be frozen.
In April, the government had stopped the Ford Foundation from releasing funds to any Indian NGO without permission from the home ministry. The Gujarat government had asked the home ministry to take action against the US-based charity alleging that they were "interfering in internal affairs" of the country and "abetting communal disharmony" through the NGO run by Ms Setalvad.
Ms Setalvad, who has worked with Gujarat riot victims for years, is facing allegations of diverting funds meant for a riot museum for personal use.