India has put more than a dozen Indian NGOs that get funds from Denmark under scanner after reports surfaced that it planned to fund civil society groups that agitate against Indian government policies.
Government sources said the broad-based inquiry was initiated on the report of the Indian mission in Denmark last month.
The report cited statement made by newly-elected minister for development cooperation Christian Friis Bach referring to plans to use the Danish official development aid as a tool to generate popular unrest so that citizens can get their rights by fighting for them.
Bach had cited the right to food campaign in India as a model where citizens approached the court against the government failure to feed the poor.
Since the funding agencies are not covered under the Foreign Contribution Regulation Act 2010, the government has ordered an inquiry into activities and accounts of civil society groups that have received funds from Denmark.
"The number of NGOs under inquiry is over a dozen," a government source said, pointing that the inquiry would cover all activities of the outfit to determine if they had violated the law.
Under the new law that came into force, the government has explicitly banned foreign funding to go to political parties or political activity. Officials believe that the government will be well within its right to invoke such provisions if it arrives at the conclusion that protests being undertaken by the NGOs were being carried out in line with Bach's approach.