NB Explains | CBI probe: What are FCRA regulations violated by Oxfam India?

The MHA has recommended a CBI probe against Oxfam India over alleged violations of the Foreign Contribution Regulation Act but what were the violations

NewsBharati    07-Apr-2023 11:18:54 AM
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New Delhi, April 7: In a significant development, the Union Ministry of Home Affairs has recommended a CBI probe against Oxfam India over alleged violations of the Foreign Contribution Regulation Act.
 
Oxfam India FCRA violations CBI probe
This came after the Income Tax Authorities had earlier conducted a survey at Oxfam’s Delhi headquarters in September 2022 due to some economic irregularities reported. Apart from this, a survey was also done by the department at the CPR (Centre for Policy Research) think tank in Delhi. Authorities reportedly suspect that Oxfam India might have sent money in the form of a commission to the Centre for Policy Research.
 

Why did MHA recommend CBI probe against Oxfam India?

 
It is being reported that Oxfam India continued to transfer Foreign Contributions to various entities even after coming into force of the Foreign Contribution (Regulation) Amendment Act, 2020 which prohibits such transfers. The amendment came into force on September 29, 2020. Oxfam India transferred funds to other NGOs, violating provisions of the FCRA, 2010.
 
From emails, found during an IT survey by the Central Board of Direct Taxes, it is revealed that Oxfam India was planning to find a wy to avoid the provision of the FCRA, 2010 by routing funds to other FCRA registered associations or through the for-profit consultancy route.
 
 
So, the Oxfam India, which is registered to carry out social activities, 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 1943.
 
Oxfam India received foreign contribution amounting to Rs 1.50 crore (approx) directly into its FC utilization account instead of receiving foreign contribution in designated FCRA account.
 

Why did the Oxfam India failed to apply for FCRA renewal?

 
FCRA registration is a mandatory requirement to receive foreign funds. It should be noted that Oxfam India was registered under the Foreign Contribution (Regulation) Act 2010 (FCRA, 2010) for undertaking social activities and its registration certificate was valid up to December 31, 2021. The organisation’s FCRA license ceased on January 1, 2022, after it failed to apply for renewal.
 
 
This came after the LRO had revealed these trusts were getting millions of rupees from suspicious sources, specifically from Hong Kong and Canada. One of CES donor named Comité Catholique Contre's (CCFD-Terre solidaire stated that it is a Catholic committee which is against hunger and for development. However there was no evidences of CES working on hunger and development. Similarly, there were several donors who seemed sceptical. With that, many revelations popped up against such NGOs who are running anti-national activities by LRO in September.

What did the Oxfam India said about the recent development?

 
In a press release, it said, "Oxfam India is FULLY compliant with Indian laws and has filed all its statutory compliances, including Foreign Contribution Regulation Act (FCRA) returns, in a timely manner since its inception. Oxfam India has been cooperating with all government agencies since its FCRA registration wasn't renewed in December 2021."
 
 
Regarding this, Oxfam India filed a plea in the Delhi High Court against the decision to not renew their FCRA registration. The High Court has asked the Union government to respond to its plea.
 
"In times of growing inequality and greater need for action on poverty eradication, Oxfam India has been and will continue to work in PUBLIC AND NATIONAL interest. Oxfam India believes this is our constitutional duty as an organisation, irrespective of obstacles and hurdles in the path," it added.
 
CBI FCRA Oxfam India Foreign Contribution Regulation Act Centre for Policy Research