The Central Bureau of Investigation (CBI) has lodged a case of alleged violation of the Foreign Contribution (Regulation) Act against NGO Oxfam India on the request of the Centre, sources said.
The Union Home Ministry had recently directed the CBI to probe the alleged foreign funding violations committed by the Indian arm of global NGO Oxfam, after suspending its FCRA license.
Seven months back, the Income Tax Department carried out a search operations at Oxfam India office.
"The I-T officials had learnt through emails that the Oxfam India was trying to circumvent provisions of the FCRA. It planned to transfer funds to other entities registered under the FCRA," the source said.
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Sources in the IT Department had claimed that tax evasions of crore of rupees in the guise of donation to political parties were detected by them.
The IT team had learnt from a report of Election Commission that a few political parties were allegedly given donations through a data entry operator by flouting rules.
"This was basically fraud-cum-tax evasion which was done in the name of donations to political parties," an IT source had claimed at that time.
It had been found that Oxfam India had been continuously transferring foreign contributions to various other entities in violation of rules. The funds being transferred by Oxfam to the Centre for Policy Research was a violation of the FCRA, which prohibits such transfers after an amendment that came in force on September 29, 2020.
Oxfam India provided funds to CPR in the form of commission, says CBI
The Central Bureau of Investigation (CBI) has lodged a case of alleged violation of the Foreign Contribution (Regulation) Act (FCRA) against Oxfam India, an NGO, on the request of the Centre, sources said.
"Though Oxfam India's FCRA registration is ceased, it planned to circumvent FCRA by routing funds through other routes. From emails found during an IT survey by the CBDT, it appears that Oxfam India is providing funds to the Centre for Policy Research (CPR) through its associates in the form of commission.
"The same is also reflected in the TDS data of Oxfam India, which shows a payment of Rs 12,71,188 to CPR during 2019-20. Oxfam India got FCRA registration to carry out social activities. However, payment made to CPR through its associates in the form of commission is not in line of its stated objectives. This is violation of FCRA," read the CBI FIR accessed by IANS.
It also said that Oxfam India continued to pay sub grants to various partners even after coming into force of the FCRA Amendment Act, 2020 which prohibits such transfers.
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The FCRA Amendment Act states that an FCRA registered association will not be entitled to transfer or sub grant any of the foreign contribution to other organisations whether registered or unregistered under the FCRA, 2010.
The amendment came into force from September 29, 2020.
"Oxfam India transferred funds to its partner NGOs, violating Section 7 of the FCRA. It appears that Oxfam India used to route funds of its foreign affiliates such as Oxfam Australia, Oxfam Great Britain etc. to selected NGOs in India, and at the same time exercise control over funds and projects.
"From emails found during IT survey by the CBDT, it appears that Oxfam India was planning to route funds to other FCRA-registered associations or through the for-profit consultancy route. Funds transacted through this route aim to circumvent FCRA. This is violation of Sections 8 and 12(4) of the FCRA," the FIR stated.
According to sources, Oxfam India received foreign contributions amounting to Rs 1.50 crore directly into its foreign contribution utilisation account instead of receiving foreign contribution in its FCRA-designated bank account.
As per the FCRA, any foreign contribution has to be received in the designated FCRA account only. After that, it can be transferred to a utilisation account.
"By receiving foreign contributions in an account other than the FCRA designated account, Oxfam India has violated Section 17 of the FCRA," the CBI said.
The FIR also said that email communication found during the IT survey by the CBDT showed that Oxfam India has been planning to pressurise the government for renewal of FCRA through foreign governments and foreign institutions.
Oxfam India has the reach and influence to request multilateral foreign organisations to intervene on its behalf with the Government of India. This exposed Oxfam India as a probable instrument of foreign policy of foreign organisations which have funded Oxfam India liberally over the years. This violates Section 12(4)(1)(ii) of the FCRA.
