CBI raids 40 locations to look into possible cooperation between government officials and foreign-funded NGOs

The Central Bureau of Investigation (CBI) launched a significant investigation into coordination between government officials and representatives of non-governmental organizations to “illegally pass” Foreign Contribution Regulation Act (FCRA) licenses in exchange for payments on Tuesday.

According to sources familiar with the situation, searches are underway at 40 locations across the country, including Delhi, Chennai, Mysore, Coimbatore, and Rajasthan, to apprehend representatives of non-government organizations (NGOs), middlemen, and public servants, including officials from the MHA’s FCRA division.

The move is being done in response to a tip from the Union home ministry, which issues licenses to non-governmental organizations (NGOs) to collect foreign financing.

Certain public workers in the FCRA division are accused of enabling illicit license clearances, which allow them to collect and use funds from foreign donors in lieu of bribes, in collusion with NGOs.

CBI is questioning a number of people in this case, including half a dozen government officials.

According to an official who requested anonymity, the federal anti-corruption investigation agency discovered hawala transactions worth $2 million in two cases related to FCRA license renewal or new grant.

According to statistics submitted in Parliament by the union home ministry, the union home ministry has refused to renew the foreign financing licenses of 466 non-government organizations since 2020 because they do not meet the qualifying requirements in line with the legislation.

According to the government, there were 100 refusals in 2020, 341 in 2021, and 25 as of March this year. Oxfam India’s application for renewal of its foreign-funding license in December 2021, which has yet to be approved, was a crucial rejection.

There are 16,895 registered organizations in the nation.

In November 2020, the home ministry tightened FCRA rules, stating that organizations that are not directly affiliated with a political party but participate in political action such as shutdowns, strikes, or road blockades will be considered political if they engage in active politics or party politics.

This move will prevent these organizations from obtaining foreign money. Farmers’ organizations, students’ organizations, workers’ organizations, and caste-based organizations are all included in this category.

The government restricted public officials from taking foreign donations and made Aadhaar necessary for all NGOs’ office-bearers in the FCRA revisions — the legislation was revised in September 2020. Organizations receiving foreign donations will be limited to using no more than 20% of those cash for administrative reasons under the new rules. This restriction was previously set at 50%. The move has an impact on the capacity of NGOs that receive foreign funding to utilize that money for campaigning.