MHA cancels FCRA licence of 2 Odisha-based NGOs

Notably, the registration of both the NGOs was suspended in August last year after prima facie information that they had violated FCRA. “Following completion of investigations against them, their FCRA has been cancelled,” a home ministry official said.

The development comes days after MHA cancelled the registration of Commonwealth Human Rights Initiative (CHRI) citing violation of FCRA on the NGO’s part. The license of CHRI had been similarly put under suspension last year. The Ministry of Home Affairs (MHA) had suspended CHRI’s license for 180 days last year for alleged violation of FCRA.

In its suspension order the Ministry of Home Affairs had said that the information about opening of a bank account in February 2016 was not given by CHRI to the authorities. It also accused CHRI of other violations of FCRA, 2010.

“Further, one utilization account through which the Association has been utilizing foreign contribution has not been intimated in ARs for FY 2016-17 and 2017-18,” the MHA order stated.

Other allegations included not giving information about projects for which foreign contribution was received in its annual report and refunding some foreign contributions back to the donor in 2013-2014 and 2014-2015 in violation of FCRA regulations.

CHRI had gone to the Delhi High Court against the order last year. Contending that the 180-day suspension threatens its “very existence” and causes great harm to its reputation, CHRI in the petition had said that freezing of its receipt and utilisation bank accounts have severely restricted its planned programme activities. CHRI is also now not in a position to pay salaries to its 40 staff members and consultants, the plea said.

Countering the allegations, CHRI had informed the High Court that it had provided clarification to the government where it had given details of project-wise foreign contribution received and utilised in 2018-19. It said it had also informed the MHA about the opening and closing balance of foreign contribution through online receipts account, payments account, income account and the expenditure account for 2018-2019.

The HC, however, did not provide any relief to the NGO and upheld the MHA’s suspension order.