Home ministry cancels FCRA licences of Rajiv Gandhi Foundation & Rajiv Gandhi Charitable Trust

The action came following investigations carried out by an inter-ministerial committee formed by the MHA in 2020

The Narendra Modi government has cancelled the licences given to Rajiv Gandhi Foundation (RGF) and the Rajiv Gandhi Charitable Trust (RGCT), both headed by outgoing Congress president Sonia Gandhi, accusing it of violating laws.

Officials said the action by the Ministry of Home Affairs (MHA) under the Foreign Contribution Regulation Act (FCRA) came following an investigation by an inter-ministerial committee formed in 2020.

The government had announced the setting up of the inter-ministerial panel on 8 July, 2020 saying it would coordinate probe into the alleged violation of laws on money laundering, income tax and foreign contributions by three trusts -- RGF, RGCT and Indira Gandhi Memorial Trust (IGMT) -- linked to the Gandhi family. So far, no action has been taken against IGMT.

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Responding to the MHA action, Congress said the government has "recycled old charges" aimed at defaming and diverting public attention from issues day-to-day concern to people.

"The Trusts have always been purely charitable in nature and comply with all laws and regulations. All statutory requirements of audit, program activity and financial disclosure, and filing of returns have been scrupulously followed every year by the Trusts," Congress General Secretary (Communications) Jairam Ramesh said in a statement.

The background for the cancellation of the FCRA registration should be obvious to anyone who understands the nature of the present dispensation, he said adding the RGF and RGCT will be responding to the charges hurled at it and take whatever action it deems appropriate legally.

"Their activities are completely open and transparent. They have rendered yeoman public service. Meanwhile the Congress will not be browbeaten or deterred from continuing with the Bharat Jodo Yatra that resumes on Oct 27th after a 3-day break," he added.

The RGF, set up in 1991 and headed by Sonia, works to realise "the vision of the former prime minister of a modern India, secular, and progressive; a country that enshrines the democratic principle of equality and blends progress with rich cultural traditions". former Prime Minister Manmohan Singh, former finance minister P Chidambaram, Congress MP Rahul Gandhi, Congress General Secretary Priyanka Gandhi Vadra, Montek Singh Ahluwalia, Suman Dubey and Ashok Ganguly.

The RGCT, also headed by Sonia, was set up in 2002 to address the development needs of the underprivileged of the country, especially the rural poor. Besides Rahul, the trustees include Ashok Ganguly, Deep Joshi and Bansi Mehta.

After the inter-ministerial team was constituted, Rahul had responded, "Mr Modi believes the world is like him. He thinks everyone has a price or can be intimidated. He will never understand that those who fight for the truth have no price and cannot be intimidated."

As Rahul had launched an attack on the government's handling of the India-China border row, the BJP had hit back with party president J P Nadda raising the issue of Chinese embassy donations to the RGF.

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Nadda alleged that China gave funds to the RGF between 2005 and 2009 to carry out studies that were not in national interest while then Law Minister Ravi Shankar Prasad had asked whether it was a "bribe" for lobbying for a Free Trade Agreement (FTA) between the two countries.

According to the RGF's annual report of 2005-06, which is available on its website, the embassy of the People's Republic of China is listed as one of its donors under "partner organisations and donors".