FCRA licence is mandatory for NGOs, think tanks, and charities to receive foreign funding.
The Ministry of Home Affairs has cancelled the Foreign Contribution Regulation Act (FCRA) license of the Centre of Policy Research, a New Delhi-based think tank, based on its investigation of alleged irregularities found in their accounts. The move comes almost a year after the Centre suspended the license over violation of the foreign funding law.
The FCRA licence is mandatory for NGOs, think tanks, and charities to receive foreign funding. When the registration of an NGO or any think tank or charitable trust is cancelled or suspended, it is barred from receiving any funding from abroad or foreign donors.
The license was suspended after a probe established that the Centre for Policy Research (CPR) was receiving foreign contributions for "undesirable purposes" and was likely to affect the country's economic interest, sources in the home ministry told NDTV.
"It alleged that CPR transferred foreign contributions to other entities and deposited the contributions in non-designated accounts in violation of FCRA," the sources claimed.
"The think-tank misutilised funds to affect India's economic interests," sources said, adding that "It is registered under the Act for carrying out "educational activities", however, it used foreign funding for litigation activities. Some of the beneficiaries of CPR are also involved in protests against development projects including coal mines," sources told NDTV.
"The investigation found that CPR diverted foreign donations to Non-FCRA entities to fund protests and legal battles against development projects. Foreign funding was used to fund paralegals for filing litigations. Funds found to be used for litigation matters including cases against coal mines/plant," sources have said.
Meanwhile, the Centre for Policy Research said they received a notice on January 10 cancelling their license. However, they also countered the move of the government and said the actions have a debilitating impact on the institution's ability to function.
"The basis of this decision is incomprehensible and disproportionate and some of the reasons challenge the very basis of the functioning of a research institution. This includes the publication on our website of policy reports emanating from our research being equated with current affairs programming," the think tank said in a statement.
The think tank is contesting the issues in the Delhi High Court. "During the tenure of our suspension, we sought and obtained interim redress from the honourable Delhi High Court and will continue to seek recourse in all avenues possible," the CPR said.
"This has undermined the institution's ability to pursue its well-established objective of producing high-quality, globally recognised research on policy matters, which it has been recognised for over its 50 years of existence. The institution has been home to some of the country's most distinguished academics, diplomats and policymakers," it added.
The cancellation comes after a decision to suspend the FCRA status of the think tank in February 2023. The suspension came after an income tax "survey" took place in September 2022
The CPR is a leading policy think-tank founded in 1973. It has conducted advanced and in-depth research on a wide range of policy-relevant issues, with a focus on India's 21st-century challenges.
The donors of the think tank include Melinda Gates and Bill Gates as well as the Ford Foundation.
Former members of the CPR governing body include former Prime Minister Manmohan Singh, former Chief Justice of India late Y V Chandrachud and veteran journalist late B G Verghese.