Centre seeks cancellation of CPR’s licence under FCRA
The think tank’s licence under the Foreign Contribution (Regulation) Act, or FCRA, was suspended by the government on February 27
The foreign funding of the Centre for Policy Research needed to be stopped immediately as the think tank was receiving and utilising its foreign contribution for “undesirable purposes” that could affect India’s economic interest, the home ministry has told the Delhi high court.
The think tank’s licence under the Foreign Contribution (Regulation) Act, or FCRA, was suspended by the government on February 27, five months after the income-tax department carried out raids on the premises of CPR, Oxfam India and the Independent and Public Spirited Media Foundation.
“During the examination of report of survey operation shared by the Income Tax Department, it has been noticed that the Petitioner is receiving and utilizing FC for the purposes other than that for which it was registered and the Petitioner is utilizing FC for undesirable purposes,” the affidavit filed through advocate Arunima Dwivedi said.
The reply was filed in response to CPRs plea challenging suspension of its licence over alleged violation of law. The think tank also stated that without foreign contribution it would be forced to shut down, adding that it has come to a grinding halt in the past six months and 23 researchers have already left the organization.
The high court on August 29 had sought the central government’s stand in CPR’s plea, which argued that the home ministry’s order to cancel its FCRA licence was passed without any inquiry. Justice Subramaniom Prasad had also directed the government to deliberate on the think tank’s application seeking release of 25% of the unutilised amount.
Rule 14 of the Foreign Contribution (Regulation) Rules, 2011, allows an organisation whose FCRA certificate has been suspended to spend 25% of unutilised funds with the government’s approval for declared aims and objectives for which the contribution was received.
The home ministry also told the court that during the examination of a report of raids shared by the income-tax department, it was revealed that CPR had transferred foreign contributions to other entities and deposited the funds in non-designated accounts in violation of the provisions of FCRA.
Against the backdrop of CPRs contention that its order suspending the licence was passed without any inquiry, the ministry, while calling the violations against the think tank as “grave in nature”, contended that any prior notice regarding suspension of certificate of registration would have defeated the very purpose of immediate stoppage of wrong utilisation of foreign funding.
“It was also revealed that the activities of the Petitioner are likely to affect the economic interest of the State. Such violations are grave in nature. Hence to stop continuation of diversion and mis-utilization of FC by the Petitioner and to safeguard the economic interest of the State, the Foreign Funding of Petitioner’s activities needed to be stopped with immediate effect,” the ministry said in its affidavit. “In such circumstances, giving any prior notice would defeat the very purpose of immediate stoppage of mis-utilization of foreign funding. The provisions of Section 13 of the Act regarding suspension of certificate of registration do not require any prior notice. Accordingly, no prior notice has been given.”