According to a report by Times of India, the Ministry of Home Affairs (MHA) has suspended the foreign funding licence of non-governmental organization CARE India. The suspension comes as a result of alleged violations of the Foreign Contribution (Regulation) Act, 2010. CARE India, a part of the CARE International Confederation, has been actively involved in poverty eradication and addressing social exclusion for the past 70 years.

As per a report by Times of India, the non-governmental organization (NGO) has been served a notice suspending its FCRA registration. The registration was last renewed on October 1, 2022, for a period of 5 years, specifically for 180 days.

"CARE India Solutions for Sustainable Development (CISSD) has received a notice from the Ministry of home affairs, as per which CISSD's FCRA registration has been suspended temporarily for a period of 180 days. We are working on the clarifications for the government and are confident the temporary suspension will be revoked," Times quoted CARE India saying.

The NGO has also clarified that it has been "serving the country with unwavering commitment and has always complied with regulations to bring holistic and sustainable changes in the areas of health, education, and livelihood and disaster response management".

In a trend that is not unique to CARE India, several renowned NGOs such as Oxfam India and Centre for Policy Research (CPR) have also faced licence denials due to similar allegations, according to recent reports. For instance, CARE India, which received Rs 377.5 crore in foreign contributions during 2021-22, faced a tax 'survey' under Section 133A of the Income Tax Act, 1961, as noted in the auditor's certificate for the organization. Oxfam's FCRA licence renewal was rejected last year, and CPR's FCRA registration was suspended in February.

Furthermore, the auditor revealed that in 2012-13, CISSD received foreign contributions of Rs 28.3 crore without obtaining prior permission from the Ministry of Home Affairs (MHA). These funds were deposited in a local funds bank account, despite being intended for business and management consultancy and public relations, which violates Section 17(1) of FCRA. Although a condonation plea was subsequently filed with the MHA, the company's accounts recorded a penalty of Rs 5.6 crore in 2018.

According to sources cited by reports, the affected NGO is reportedly considering downsizing its operations in the country. However, no official statement has been issued by the organization regarding this matter.

Image source: TOI