Trouble is brewing for one of the foremost funding agencies in the world, Ford Foundation, as the Ministry of Home Affairs has placed it under the watch list in "national interest and security " of the country.
Union Home Minister Rajnath Singh. AFP
However, later in the evening today, according to a NDTV report, the Ford Foundation had issued a statement saying, " We have not been contacted directly by MHA and have no information about latest news reports."
The action against Ford Foundation comes days after another foreign NGO - Greenpeace India - earned a negative report from the Intelligence Bureau. The IB reportedly advised the finance ministry to remove any income-tax exemption citing alleged financial irregularities.
"Putting Ford Foundation on prior permission list, MHA has ordered that all the funds coming from Ford Foundation, US, for any agency or NGOs in country will first need to be cleared by the ministry. The action has been taken under section 46 of the FCRA," a report in The Economic Times said.
As per the new directives from the Home Ministry, RBI will notify all banks and their branches in India that any transaction executed by Ford Foundation through its bank accounts should have prior approval of the ministry. The Centre has already blocked around $5 million in grants in the last few months, The Economic Times report said.
On 15 April, the Gujarat government sought a probe into the role of activist Teesta Setalvad's NGO alleging that it misused funds received from a foreign donor (Ford Foundation) to create 'communal disharmony'.
"We learnt that the funds which they received, especially from the (US-based) Ford Foundation, were actually used for disturbing the communal harmony and carrying out anti-national propaganda against India in foreign countries," Gujarat Minister of State for Home Rajnikant Patel told PTI. "We have written a letter to Union Home Minister Rajnath Singh seeking probe into the role of Setalvad's NGO (Sabrang Trust) after we found out funds given to the NGO were misused."
"During the investigation of Gulberg Society museum funds embezzlement case, these things came to light," Patel said. The Ford Foundation had given more than $500,000 to Setalvad's NGO, he said.
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According to The Indian Express, the Gujarat government said in its letter to the Union Home Ministry, "It is revealed during the course of investigation (in the riot relief fund embezzlement case) that Ford Foundation, established with the stated goal of promoting communal harmony, democratic principles and social justice, has been indulging in covert activities of promoting interests that are completely contradictory to the said goals."
The Gujarat government and Setalvad are already embroiled in legal battles.
Few days ago, Greenpeace India also faced the ire of the Centre, as the government froze the NGO's bank accounts on the grounds that it was encouraging anti-development campaigns. The government also temporarily suspended the registration of Greenpeace India Society under the Foreign Contributions Regulation Act 2010 (FCRA).
Rejecting that Greenpeace India was working to protect the environment, the home ministry felt to the contrary saying that it was "hurting our national interest". Seven bank accounts of Greenpeace in IDBI Bank, ICICI Bank and Yes Bank were frozen with immediate effect and the NGO was told that it can appeal against the order in 30 days.
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