The Union Home Ministry is examining the alleged misuse of foreign funds by Delhi-based think tank Centre for Policy Research (CPR) to aid protests and legal battles against development projects, impacting the country’s economic interests.
The MHA on Wednesday cancelled the Foreign Contribution Regulation Act (FCRA) registration of the NGO.
While the CPR has termed the action “incomprehensible and disproportionate “, the government claims it found serious violations of FCRA provisions, including funding “paralegals” to approach courts against developmental projects including coal mines, which is not in tune with the law.
Government sources claimed that by transferring funds to non-FCRA entity and diverting the funds for “protests and legal battles” against developmental projects and concealing facts, CPR has misused foreign funds to impact the country‘s economic interests.
The CPR has been registered under the Act for carrying out “educational activities”, however, sources claimed the NGO used foreign funding for litigation activities.
“Some of the beneficiaries of CPR are also involved in protests against development projects including coal mines. It was found that CPR diverted foreign donation to non-FCRA entity to fund protests and legal battles against development projects,” said sources.
The home ministry is also examining how the foreign funding was diverted to paralegals for filing litigations in cases against coal mines or coal plants and whether it impacted other developmental projects, too.
Government officials said the findings are serious in nature.
Another allegation is that the CPR has been engaged in production of current affairs programmes such as examining policy challenges for the next government. Sources said publishing current affairs programme using foreign funding is prohibited under Section 3 of the Act.
The CPR, meanwhile, claims the reasons for cancelling its FCRA registration challenges the very basis of the functioning of a research institution in the country.
