On Wednesday, the Central government cancelled the Foreign Contribution (Regulation) Act (FCRA) registration of the prominent public think-tank Centre for Policy Research (CPR) for alleged violation of laws, said the officials. This move came a year after the Ministry of Home Affairs (MHA) had suspended the NGO’s registration under the FCRA, initially on February 2023.
MHA’s Reasons to Cancel License of Think Tank
The MHA has cancelled the FCRA registration of the NGO for violating the provisions of the foreign funding law. The FCRA license was suspended in February 2023 for 180 days. Further, the MHA alleged that CPR used foreign contributions for purposes other than the educational programs for which the license was granted. And, also deposited the contributions in non-designated accounts in violation of the FCRA Act.
Moreover, there were also claims that CPR failed to comply with the mandatory reporting requirements under the FCRA Act, potentially regarding specific funds and transaction and expenditure details. When contacted, the CPR president and Chief Executive Yamini Aiyar said the NGO would issue a statement as soon as possible.
CPR’s Response to MHA Decision
CPR strongly denied any misuse of funds and maintained that all their activities were within the framework of the law. It also raised concerns about a lack of transparency due to the process of the MHA’s decision. They were not given a proper opportunity to defend themselves against the allegations before the cancellation order was issued. The president of the organization stated that the CPR is weighing its options on how it can seek justice, as reported by the news agency The Hindus.
Moreover, the statement released on January 17, where Yamini Aiyar said, “The basis of this decision is incomprehensible and disproportionate, and some of the reasons given a challenge to the very basis of the functioning of a research institution…”. The organization sought interim redress from the Delhi High Court after February 2023, which is still ongoing. These actions followed an Income Tax “survey” that took place in September 2022, which undermines the institution’s ability and objective.
I-T Department Survey
The Income Tax Department or I-T department carried out searches at CPR’s offices in September 2022. Other NGOs, like Oxfam India, were also targeted. While, this wasn’t a full-raid, but an investigation focusing on potential irregularities in financial transactions, particularly related to foreign funding.
However, the exact reasons for the survey weren’t officially disclosed, but speculation centred around alleged violations of the Foreign Contribution Regulation Act (FCRA), which governs foreign donations received by NGOs. And since then, the CPR said that it has responded to all the notices issued to it. Meanwhile, the allegations made by the centre had come across Academics and researchers from across the world and criticized the Union government on their decision.
Criticism over cancellation
The cancellation of CPR’s FCRA registration has been criticized by several academics, researchers, and civil society organizations. They view it as an attempt by the government to silence dissent and curtail the activities of think tanks and NGOs.
Calling CPR “one of India’s oldest and most esteemed policy research institutions” and emphasizing its “excellence that is second to none among international scholars”. Also, they believe this decision to cancel, stifles the crucial role of think tanks in providing independent research and analysis on critical issues.
About CPR
Established in 1973, the Centre for Policy Research (CPR) is a prominent Indian think tank in New Delhi. It is dedicated to public policy research, it analyzes issues affecting India’s policy, economy and society. It serves as a platform for dialogue and debate. Through reports, conferences and publications, it informs policy decisions and fosters collaboration with academics, and others to shape a better future for India.
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