A series of mistakes, apparently on the part of the postal department, led to the cancellation of the licence of the Indian Institute of Technology, Kanpur (IIT-K) under the Foreign Contribution Regulation Act (FCRA).
The home union ministry took the action after it did not receive a reply to a show cause notice sent to the institute. The registrar of the institute RK Sachan said, "Every year we have to submit the annual statement of funds received from foreign sources to the home ministry and the Reserve Bank of India (RBI). Somehow, the ministry did not get the statement and issued a notice to the institute. The institute did not receive the notice either and hence could not reply to the ministry," he added.
Consequently, the officials of the ministry cancelled the registration of the institute. The postal department could not trace the address of the IIT-K and returned the show cause notice sent to the institute with a remark on it saying, 'Undelivered. Addressee not found."
On receiving the undelivered letter, the officials at the home ministry cancelled the registration of the institute for the month of August. Sachan said, "On Monday, we sent the copy of the statement to the ministry. The registration of the institute would soon be restored."
However, it is being said that the IIT-K should have been exempted since it was audited by the comptroller and auditor general (CAG). The ministry notification for July 2011 announced exemption to all bodies constituted or established by or under a central act or state act, requiring to have their accounts compulsorily audited by the CAG of India, are exempted from all the provisions of the FCRA 2010. Notably, the IIT-K gets a few crores every year from its alumni settled abroad.