MHA cancels FCRA registration of Centre for Policy Research for 'misutilising' foreign contribution, affecting India's 'economic interests', other violations

By Rajnish Singh
New Delhi [India], January 17 : The Ministry of Home Affairs (MHA) has cancelled the Foreign Contribution Regulation Act (FCRA) registration of New Delhi's leading public policy research institution Centre for Policy Research (CPR) for allegedly violating certain foreign funding norms that included "misutilisation of foreign contribution and affecting India's 'economic interests".
Sources said that the Certificate of the CPR has "misutilised Foreign Contribution and the organisation used foreign funds to affect India's economic interests in violation of FCRA, 2010"
"The FCRA registration certificate of Centre for Policy Research, New Delhi (CPR) has been cancelled due to several violations of FCRA, 2010," said sources.
Explaining reasons, sources said, the CPR is registered under the FCRA Act for carrying out "educational activities", however, it used foreign funding for litigation activities.
"Some of the beneficiaries of CPR are also involved in protests against development project including as coal mines," the sources, privy to the development, told ANI.
"It was found that CPR has diverted foreign donation to Non-FCRA entity to fund protests and legal battles against development projects. Foreign funding was used to fund paralegals for filing litigations."
The sources further mentioned that "the funds found to be used for litigation matters including cases against coal mines and plant."
"Foreign contributions were routed by CPR to fund 'paralegals' to approach courts against developmental projects including coal mines, which is not in tune with its FCRA registration. By transferring funds to non-FCRA entity and diverting the funds for protests and legal battles against developmental projects and by concealment of facts, CPR has misutilised foreign contribution and used foreign funds to affect India's economic interests in violation of FCRA, 2010."
The CPR, an FCRA registered association, the sources also added, is engaged in the production of "current affairs programmes such as overview on the CAQM Act 2021, Policy challenges for the new Government etc." "Publishing current affairs programme using foreign funding is prohibited under section 3 of the Act."
Yamini Aiyar, President, CPR told ANI that "the FCRA registration of her organisation was cancelled via order received on January 10" and that the institution will weigh its options to seek justice.
The MHA's action comes almost a year after CPR's FCRA registration was suspended for 180 days and then the suspension was extended for another 180 days. The MHA had suspended the FCRA licence of CPR in February last year.
The CPR is a leading policy think-tank since 1973, which conducts advanced and in-depth research on a wide range of policy-relevant issues, with a focus on India's 21st Century challenges.
Earlier, the Income Tax department had in September 2022 conducted a 'survey' operation against the CPR, and two other organisations-- Oxfam India and a Bengaluru-based Independent and Public-Spirited Media Foundation (IPSMF) -- as part of a probe to look into their foreign funding.
Oxfam India's foreign funding is also blocked in India as MHA, in December 2021, refused to renew its FCRA licence. Parallelly, the Central Bureau of Investigation is also investigating Oxfam India.
The CPR then had filed a challenge in the Delhi High Court against the suspension of its license too. The MHA then contended that CPR's foreign funding should be ceased due to concerns about receiving foreign contributions for undesirable purposes that could impact the country's economic interests. The MHA had further accused the CPR of transferring foreign contributions to other entities and depositing them in non-designated accounts, violating the FCRA.
In a statement, the CPR President also mentioned that her organisation received a notice from the MHA on January 10 cancelling its FCRA status, saying "the basis of this decision is incomprehensible and disproportionate, and some of the reasons given challenge the very basis of the functioning of a research institution."
"This includes the publication on our website of policy reports emanating from our research being equated with current affairs programming.
During the tenure of our suspension, we sought and obtained interim redress from the honourable Delhi High Court and will continue to seek recourse in all avenues possible," mentions CPR statement.
"This cancellation comes after a decision to suspend the FCRA status in February 2023. These actions followed an Income Tax "survey" that took place in September 2022. The actions have had a debilitating impact on the institution's ability to function by choking all sources of funding and this has undermined the institutions ability to pursue its well established objective of producing high quality, globally recognised research on policy matters, which it has been recognised for over its 50 years existence.
"During this time the institution has been home to some of the country's most distinguished academics, diplomats and policymakers," reads the statement.
It further said that the CPR is a 50-year-old institution that has a proud legacy of deep contributions to India's policy making ecosystem, and over the past five decades has been home to many distinguished faculty, researchers and members of the board.
"The CPR firmly reiterates that it is in complete compliance with the law, and has been cooperating fully and exhaustively at every step of the process. We remain steadfast in our belief that this matter will be resolved in line with constitutional values and guarantees."