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Centre orders CBI probe against Oxfam India over FCRA violation
The Centre has ordered a CBI into violation of the FCRA by Oxfam India, according to two officials familiar with the development who asked not to be named.
Almost seven months after the Income Tax (I-T) department carried out a survey of the offices of NGO Oxfam India and think-tank Centre for Policy Research (CPR), the Union government on Thursday ordered a probe by the Central Bureau of Investigation (CBI) into violation of the Foreign Contribution Regulation Act (FCRA) by the former, according to two officials familiar with the development who asked not to be named.
The action, the officials said, was ordered after it was found that there was clear violation of rules and funds were routed by Oxfam to CPR through its associates or employees.
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In a statement later in the day, Oxfam India said it is fully compliant with the Indian laws and has filed all its statutory compliances, including FCRA returns, in a timely manner since its inception.
Oxfam India is the arm of global NGO Oxfam and works for the rights of Adivasis, Dalits, Muslims, and women and girls across the country.
It was registered under FCRA for undertaking social activities but the ministry of home affairs (MHA) denied renewal of its licence for receiving and using foreign funding on December 31, 2021.
CPR, a non-profit think-tank, conducts advanced and in-depth research on a wide range of policy-relevant topics, with focus on India’s 21st-century challenges.
The move to order a CBI probe has come after the I-T department, in September 2022, conducted a “survey” at the premises of Oxfam, CPR , and Bengaluru based Independent and Public-Spirited Media Foundation (IPSMF).
Sharing details of the violations based on which MHA has ordered a probe against Oxfam India, the first officer cited above said: “Oxfam India continued to transfer foreign funds to various entities even after the coming into force of the Foreign Contribution (Regulation) Amendment Act, 2020 which prohibits such transfers. The amendment came in force on September 29, 2020. Oxfam India transferred funds to other NGOs, violating provisions of FCRA, 2010.”
The officer added: “Through emails found during the I-T survey, it was revealed that the Oxfam India was planning to circumvent provision of FCRA, 2010 by routing funds to other FCRA-registered associations or through the for-profit consultancy route.”
In November 2020, the home ministry tightened the FCRA rules, saying that organisations which may not be directly linked to a political party but engage in political action like bandhs, hartal (strike) or rasta rook (road blockades) will be considered of political nature if they participate in active politics or party politics. The organisations covered under this category include farmers’ organisations, students or workers’ organisations and caste-based organisations. In the amended FCRA – the law was amended in September 2020 – the government barred public servants from receiving foreign funding and made Aadhaar mandatory for every office-bearer of the NGOs. The new law also says that organisations receiving foreign funds will not be able to use more than 20% of such funds for administrative purposes. Earlier, this limit was 50%.
The second officer cited above said that Oxfam India also “routed funds to CPR through its associates/employees in the form of commission.” “The same is also reflected through TDS (tax deducted at source) data of Oxfam India which shows payment of ₹12,71,188 to CPR in the FY 2019-20 under section 194J (of Income Tax act),” this officer said.
The second officer said Oxfam India received foreign funds worth ₹1.50 crore (approximately) directly into its “foreign contribution utilisation account instead of receiving foreign contribution in the designated FCRA account”.
In a statement later in the day, Oxfam India said: “Oxfam India has been cooperating with all government agencies since its FCRA registration wasn’t renewed in December 2021.” It added: “In times of growing inequality and greater need for action on poverty eradication, Oxfam India has been and will continue to work in public and national interest. Oxfam India believes this is our constitutional duty as an organisation, irrespective of obstacles and hurdles in the path.”
Yamini Aiyar, president and chief executive of CPR, said : “We have no intimation (from government) of any CBI probe, so I won’t be able to comment yet.”
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In March, the home ministry suspended the FCRA licence of CPR. At that time, CPR issued a statement, saying its balance sheets are in the public domain and that it will explore all avenues of recourse available.
“We are in complete compliance with the law and are routinely scrutinised and audited by government authorities, including the Comptroller and Auditor General of India. We have annual statutory audits, and all our annual audited balance sheets are in public domain. There is no question of having undertaken any activity that is beyond our objects of association and compliance mandated by law,” CPR’s statement in March said.
After its funding was blocked by MHA in December 2021, Oxfam issued a statement saying, “government of India’s decision to refuse renewal of Oxfam India’s FCRA registration will severely affect the organisation’s ongoing crucial humanitarian and social work in 16 states across the country. This includes setting up of oxygen plants, providing lifesaving medical and diagnostic equipment such as oxygen cylinders and ventilators and delivery of food to the most vulnerable communities during the Covid-19 pandemic.”
