The Union Ministry of Home Affairs (MHA) on Thursday recommended an investigation by the Central Bureau of Investigation (CBI) into the alleged violation of FCRA provisions by Oxfam India, one of the largest NGOs working on food, shelter and education of vulnerable groups.
The Foreign Contribution (Regulation) Act (FCRA) registration of Oxfam India that enabled it to receive foreign funds was not renewed by the Ministry in 2021.
On Thursday, a senior government official said that the NGO was registered under FCRA for undertaking “social” activities and its registration was valid till December 31, 2021.
The official said that Oxfam continued to transfer foreign funds to various other entities even after the Foreign Contribution (Regulation) Amendment Act, 2020, which prohibits such transfers, came into force.
The CBI investigation comes after Income Tax authorities on September 7, 2022 searched the offices of Oxfam India and Centre for Policy Research (CPR), one of the leading public policy think tanks.
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The official said the e-mails found during the I-T survey revealed that Oxfam India was planning to circumvent FCRA provisions by routing funds to other FCRA-registered associations or through the for-profit consultancy route.
The findings of the survey suggested the NGO acted as “a probable instrument of foreign policy of foreign organisations and entities which have funded the Oxfam India liberally over the years”.
The official added that though Oxfam is registered to carry out social activities, it transferred funds to CPR through its associates and employees in the form of commission. “The same is also reflected from the TDS [tax deducted at source] data of the Oxfam India which shows payment of ₹12,71,188 to the CPR in the 2019-20 under section 194J.” The Ministry on February 27 suspended the FCRA registration of CPR for 180 days.
Oxfam received ₹1.5 crore foreign contribution directly into its utilisation account instead of receiving foreign contribution in designated FCRA account as mandated through the 2020 amendment of the Act, the official said.
In early 2022, United Kingdom officials discussed foreign funding restrictions placed on Oxfam and other British NGOs, requesting the Ministry to reconsider its decision to deny Oxfam India’s registration renewal application.
Oxfam has also moved a petition in the Delhi High Court against the Ministry’s decision to not renew its FCRA registration.
Oxfam India said in a statement that it is fully compliant with Indian laws and has filed all its statutory compliances, including FCRA returns, in a timely manner since its inception. “Oxfam India has been cooperating with all government agencies since its FCRA registration wasn’t renewed in December 2021. We have filed a plea in the Delhi High Court against the decision to not renew our FCRA registration. The High Court has asked the Union government to respond to our plea,” the statement said.
