The CPR had been granted tax exemption status until 2027 under Section 12A of the Income Tax Act. The I-T Department challenged the exemptions with a 33-page show cause notice, sent on December 22, 2022 alleging that the CPR was involved in activities which were “not in accordance with the objects and the conditions subject to which it was registered”.
Among the ineligible “activities” listed by the I-T Department is the CPR being “involved” in the Hasdeo movement (launched by activists against coal mining in the Hasdeo forests of Chhattisgarh) through the Jan Abhivyakti Samajik Vikas Sanstha (JASVS).
The I-T has shown calculations that in the past four years, the JASVS received between 87%-98% of its donations from the CPR and, according to them, this “was not in pursuance of its approved objectives”.
What is the Hasdeo movement?
Hasdeo Aranya is a biodiversity-rich forest which also happens to be a rich source of coal. For months in 2022, tribals and activists had protested against the operation of three coal mines in the region: the Parsa East Kente Basan (PEKB), Parsa, and Kente extension.
In June 2022, the Congress government in Chhattisgarh said it had stopped all mining work in Hasdeo Aranya, after state minister and local Congress MLA, T S Singh Deo, also joined forces with the protesters.
The mining proposal, objections
A sprawling forest in the northern part of Chhattisgarh, Hasdeo Aranya is known for its biodiversity. The forest falls under Korba, Sujapur and Sarguja districts, with a sizeable tribal population. The Hasdeo river, a tributary of Mahanadi, flows through it.
In 2021, a report on the region by the Indian Council of Forestry Research and Education (ICFRE), an autonomous organisation under the Ministry of Environment, Forest & Climate Change, termed Hasdeo Aranya the “largest un-fragmented forests in Central India consisting of pristine Sal (Shorea robusta) and teak forests.”
The Hasdeo Aranya Coal Field (HACF), meanwhile, is spread over nearly 1,880 sqkm and comprises 23 coal blocks. The demand for mining picked up around 2010, when the Chhattisgarh government recommended forest clearance for diverting 1,898.328 hectares of forest land for Parsa East and Kente Basan (PEKB) coal fields. These were allotted to Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). The PEKB coal block is run by Adani Enterprises, the official Mine Developer and Operator in this venture.
This first move was followed by multiple court orders, forest assessment reports, and protests by forest-dwellers.
In June 2011, the Forest Advisory Committee of the Environment ministry recommended against diverting the forest land for mining. The then Environment minister, the Congress party’s Jairam Ramesh, overruled this decision, saying coal mining would be carried out in an area away from the dense forests.
In 2012, Forest Clearance was granted by the MoEF for mining in phase I of PEKB coal mines, which limited mining to 762 hectares and a reserve of 137 million tonnes.
In March 2022, the Chhattisgarh government said that it had given permission to Rajasthan Rajya Vidyut Utpadan Nigam for coal mining in an area of 1,136 hectares under the second phase of the PEKB coal block.
The environmental impact
By May 2022, two studies by the ICFRE and Wildlife Institute of India (WII) had come out. Both underlined the importance of biodiversity in the region. They also addressed the issue of human-elephant conflicts, noting that while Chhattisgarh has fewer elephants compared to other states, it accounts for a significant percentage of conflict due to habitat loss or clearing of forests. Further deforestation could lead to elephant movements spilling over to urban areas, these studies noted.
The ICFRE also noted the loss of the natural environment and the “serious impact on the community in the form of loss of livelihood, identity, and culture” with regards to tribal people living in the area if mining were to be allowed. Though cases are pending in various courts and a further study has been suggested by even the ICFRE, in March 2022 the Chhattisgarh government approved the second phase of mining in the PEKB coal block.
The protests
Some organisations as well as individuals have actively campaigned against the mining in the area over the last decade. In October 2021, a 300-km-long march was undertaken by around 350 people from tribal communities to Raipur alleging “illegal” land acquisition.
On May 25, 2022, a press conference was held in Delhi ‘by Friends of Hasdeo Aranya’ who alleged that fake gram sabhas were constituted to indicate “consent” by the tribal people for mining activities.
In the same month, the Rajasthan electricity board CMD told ANI: “Rajasthan will plunge into a severe power crisis if it fails to get coal from Chhattisgarh”. He claimed that activists were “misguiding” local people, and that more than 8 lakh trees had been planted in Chhattisgarh against those felled for mining.
In June, days before announcing that mining activity in the area would stop, Chhattisgarh Chief Minister Bhupesh Baghel had said those politicising the issue “should first stop using electricity and air-conditioner, fan and cooler, and then fight for the cause”.
In October 2021, a 300-km-long march was undertaken by around 350 people from tribal communities to Raipur alleging “illegal” land acquisition (File) 
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