MHA recommends a CBI investigation against Oxfam India for alleged FCRA violations

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• Apr 6, 2023 | Dhupali Das

Two years after rejecting Oxfam India's application to renew its Foreign Contribution (Regulation) Act...

Digital Desk: Two years after rejecting Oxfam India's application to renew its Foreign Contribution (Regulation) Act (FCRA) registration, the Ministry of Home Affairs (MHA) on Thursday proposed a CBI investigation into alleged FCRA violations by the global non-profit organization.

An MHA official stated that Oxfam India was registered under the FCRA, 2010 for social activities, and their registration was valid until December 31, 2021. The MHA is believed to have found a number of serious violations during this period, and as a result, they reported it to the CBI for possible legal action.

"The MHA discovered that Oxfam India continued to transfer foreign contributions to multiple entities after the FCRA, 2020, which prohibited such transfers. The amendment went into effect on September 29, 2020, and Oxfam India transferred money to other NGOs in violation of the FCRA, 2010," a source said.

The Income Tax Department carried out a "survey" on the Oxfam India premises last year. "According to emails discovered during a CBDT IT survey, Oxfam India was planning to circumvent provisions of the FCRA, 2010, by routing funds to other FCRA registered associations or through the for-profit consultancy route. A CBDT IT survey also revealed Oxfam India as a possible instrument of foreign policy of foreign organizations/entities that have generously funded Oxfam India over the years," the source said.

"Oxfam India received foreign contributions totaling approximately Rs 1.50 crore directly into its FC utilization account rather than receiving foreign contributions in designated FCRA accounts," the source added.

According to sources, Oxfam India routed money to the Centre for Policy Research (CPR) as commission through its associates/employees. "This is also reflected in Oxfam India's TDS data, which shows a payment of Rs 12,71,188 to the CPR under section 194J in the fiscal year 2019-20," the source said.

On February 13, the Delhi High Court requested the Centre's position in Oxfam India's application to renew its registration under the FCRA, 2010. The Centre, through the MHA, rejected Oxfam India's proposal to renew its FCRA registration on December 22, 2021. Oxfam India challenged the decision in the High Court, and the court ordered the Centre to issue a reasoned speaking order on its revision petition. Following that, on December 1, 2022, the Centre issued an order refusing Oxfam's revision application and denying the renewal of its FCRA registration. The petition said that Oxfam India works in India on human growth and poverty alleviation.

As per its website, Oxfam India is a part of the global alliance of 21 Oxfams worldwide. In 2008, Oxfam India separated from its parent organization to become an Indian NGO. Oxfam assessed which states required the most assistance and began working on the field in the six poorest states of India: Uttar Pradesh, Jharkhand, Bihar, Chhattisgarh, Assam, and Odisha. According to Section 8 of the Indian Companies Act, 2013, the government listed Oxfam India as a "non-profit organization." Over the last ten years, Oxfam India has reacted to disasters in Assam, Bihar, Uttar Pradesh, Kerala, Kashmir, Manipur, Gujarat, Tamil Nadu, West Bengal, and Odisha. They have also helped internally displaced people during the Kargil War, the Muzaffarnagar violence, the Kokrajhar violence, and other conflicts.

This is the second time in the last month that the MHA has proposed a CBI investigation. In March, the MHA also suggested that the CBI investigate Aman Biradari, an NGO founded by writer and human rights activist Harsh Mander, for alleged FCRA violations. "From 2018 to 2022, the FCRA registration certificates of 1,827 associations were cancelled due to violations of the Act and rules," Union Minister of State for Home Nityanand Rai told the Rajya Sabha last month.