Centre bars activist Teesta’s NGO from receiving foreign funds

Published on: Jun 17, 2016 09:38 am IST

NEW DELHI: The Union home ministry on Thursday barred a non-governmental organisation (NGO) run by Prime Minister Narendra Modi’s vocal critic and activist Teesta Setalvad from receiving foreign funding.

HT Image
HT Image

The ministry had earlier temporarily suspended the registration of Sabrang Trust, the NGO run by Setalvad, under the Foreign Contribution Regulation Act (FCRA) that governs the foreign funding of all NGOs.

The ministry’s order said during the inspection of Sabrang it emerged that the NGO indulged in many activities that were in violation of FCRA.

The ministry’ s order, reviewed by HT, said the NGO in 2010-11 incurred 64.23% of the foreign contribution it received on administration expenditure. Similarly in 2011-12, the NGO used 55.14% of its foreign contribution on administrative expenses and under the FCRA rules, no NGO can use more than half of its foreign contribution for such expenditure without the approval of the government.

The ministry charged that Setalvad’s NGO spent Rs 50 lakh on another company, Sabrang Communications and Publishing Private Limited, which is not registered under the FCRA. Besides, the FCRA totally prohibits activities carried out by Sabrang Communication as self-owned media and publishing company. Sabrang Communcation was also paid by Sabrang Trust for buying bulk SMS service which is again a prohibited activity under the FCRA.

Sabrang also transferred an amount of Rs 2.46 lakh from its account designated for receiving foreign funding to its domestic account which is again not allowed and treated as misutilisation of funding under the FCRA.

Sabrang also made direct payments of Rs 12 lakh from the foreign contribution designated account to credit card accounts of Setalvad and her husband Javed Anand and credit cards were used for dining and buying items such as cake, sweets and ear buds which are personal expenses and thus not allowed under the FCRA rules.

Another NGO run by Setalvad and Anand — Citizens for Justice and Peace — has already been put under prior permission category, under which the home ministry will give prior approval before any foreign fund is transferred to it.

Setalvad and her husband are facing a CBI probe as well on the charges of receiving foreign funding without permission of the home ministry under the FCRA.

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