Govt cancels permission granted to CHRI to receive foreign funds

The government has cancelled the permission granted to the Commonwealth Human Rights Initiative (CHRI) to collect foreign funds alleging violation of laws and diversion of funds received from abroad, a charge denied by the organisation which will be taking legal recourse to reverse the decision.

The Ministry of Home Affairs (MHA) had on April 19 issued the order, saying that the violation included depositing money that was not covered under the definition of foreign funds, not providing full details in annual report of 2018-19 and utilising foreign donations on activities beyond the scope of Foreign Contribution (Regulation) Act, 2010.

The CHRI works in the field of human rights to access information from government and other public bodies in Commonwealth countries. It also works on a police reforms programme.

The MHA had suspended the foreign contribution registration for six months on July 7 last year and it was extended for another six months from December 1 last year. In February this year, the MHA issued a notice to CHRI asking why its registration should not be cancelled for violations, to which the organisation appeared before concerned officials.

In a statement, CHRI said, "more than 7,500 pages of records containing details of our transactions were photocopied and submitted on MHA’s demand, within the deadlines stipulated. Nothing in the cancellation order indicates why the MHA finds our explanation unsatisfactory, unreasonable or untenable."

The order said CHRI had deposited Rs 31,90,598 in its bank account designated to receive foreign funds though it was not covered under the definition of foreign contribution. The CHRI said that it had explained to the MHA, with supporting evidence, that these funds were received from foreign donor agencies situated in the United Kingdom and Sri Lanka for carrying out specific project activities in India in 2014 and 2018, respectively.

"Even though these were consultancy project agreements, out of abundant caution, CHRI reported them to MHA as contributions received from ‘foreign sources’ which indeed they are," the CHRI said.

Another violation cited in the MHA order was that the CHRI provided incomplete information for 2018-19 by not disclosing details of activities/projects for which foreign contributions had been received and utilised. The CHRI said it had on three occasions submitted details online about foreign funds received and utilised and were uploaded within the stipulated deadline.

The MHA also said CHRI provided incorrect and conflicting information in the FC-4 Form in Annual Report from 2013-14 to 2018-19 regarding opening and closing balances, a charge denied by the organisation.

In a statement, the CHRI said the MHA has alleged that it utilised foreign contributions on activities beyond the scope of FCRA but it did not find mention in the final cancellation order. The CHRI said it was "unable to offer any explanation against such a vague and bald allegation".