The NGO cannot accept foreign funds anymore
AB Wire
The Government of India cancelled the registration of activist Teesta Setalvad’s NGO Sabrang Trust under the Foreign Contributions Registration Act, 2010, permanently for violating the provisions of the act, reported The Times of India.
Canceling the registration, the Home Ministry said that irregularities including diversion of foreign funds, and using trust funds for personal purposes were found during the inspection. When cancellation comes into force, the trust cannot accept foreign funds.
“In exercise of powers conferred by clauses (b), (c) and (d) of sub-section (1) of Section 14 of the Foreign Contribution (Regulation) Act 2010, the central government hereby cancels the permanent registration of Sabrang Trust with immediate effect,” the government order said.
The Home Ministry had temporarily suspended the FCRA license of Sabrang Trust before nine months when it started a probe against the trust.
The ministry said that Teesta Setalvad and her husband Javed Anand used the funds of the trust for personal purposes which are violation of the provisions of the FCRA. The trust transferred 12 lakh Rupees to Citibank and Union Bank of India for repaying the credit card loan of Setalvad and Anand.
The duo had formed a company named Sabrang Communications & Publishing Pvt Limited (SCPPL) and published a magazine called Communalism Combat. They were working as the directors, co-editors, printers and publisher of the company.
Sabrang Trust diverted Rupees 50 lakh from its account to SCPPL’s account which is also an explicit violation of FCRA. In another violation, it spent more than 50 percent of its foreign receipts for administrative expenses.
Violating Section 8(1) and Section 17(1) of FCRA, the trust transferred 2.4 lakh from its designated foreign account to domestic account. It was also found that funds were received for purposes not allowed under its registration.
Denying the charges, Sabrang Trust said: “the trustees regret to note that today’s order of the home ministry is simply a mechanical reiteration of the very same allegations made earlier, in total disregard to the detailed and reasoned explanations and arguments put forward by the trust”. It further said “that the cancellation was imminent was apparent from the mere show of a personal hearing granted to Sabrang Trust on April 11, 2016…the hearing was over in less than 10 minutes,” in a statement.
Setalvad was actively involved in pursuing the Gujarat riots of 2002 when Prime Minister Narendra Modi was the chief Minister of the state.