Foreign funds to the tune of Rs 1.5 crore are under the scanner of Union home ministry which has asked the CBI to probe the alleged violations of the foreign contribution regulation act (FCRA) by Oxfam India.
According to government sources, nearly Rs 1.5 crore foreign contribution was received by Oxfam India, which came directly into its FC (foreign currency ) utilization account instead of the designated FCRA account. Five significant violations of the foreign contribution regulation act (FCRA), which governs foreign funding to Indian NGOs, have led to the crackdown on Oxfam India by the Union home ministry.
According to sources, Oxfam India continued to transfer foreign contribution to various entities despite the Foreign Contribution (Regulation) Amendment Act, 2020, which prohibits such transfers. The amendment came into force on September 29, 2020. However, sources said Oxfam India transferred funds to other NGOs, violating provisions of the act.
Secondly, the Central Board of Direct Taxes is learnt to have also found evidence of rules being circumvented to fund other NGOs in the country. Sources said e-mails found during the IT survey by the CBDT revealed that Oxfam India was planning to route funds to other FCRA-registered associations by using the for-profit consultancy route, to circumvent the law.
Thirdly, government sources said the IT survey by the CBDT also raised suspicion that Oxfam India was allegedly being used as an instrument by some organisations based outside the country as part of their 'foreign policy' to fund the organization liberally over the years. The role of such organizations and their motives are expected to be further investigated by the CBI.
Government officials said while Oxfam India was registered to carry out 'social activities', it routed funds to the Centre for Policy Research (CPR) through its associates and employees in the form of commission. “The same is also reflected in the TDS data of Oxfam India which shows a payment of Rs 12,71,188 to the CPR in the financial year 2019-20 under section 194J,” said an official.
Further, foreign funds to the tune of Rs 1.5 crore are under examination by the home ministry which found that it did not come in through the designated route.
Oxfam India was registered under the FCRA for undertaking social activities and its registration certificate was valid until December 31, 2021.
