Tax Crackdown Links NGOs To Foreign Funding And Joint Agendas: Report

A recent investigation by the Income Tax Department has drawn significant attention to the interconnectedness of several prominent non-governmental organisations in India, following a crackdown on their operations.

The probe, initiated after searches on Sept. 7, 2022, at the offices of Oxfam, Centre for Policy Research, Environics Trust, Legal Initiative for Forest and Environment, and Care India Solution for Sustainable Development, alleges that these NGOs have been involved in activities that stall major economic and developmental projects in the country.

The investigation, detailed in documents reviewed by The Indian Express, reveals that over 75% of the funding for four of the five NGOs came from foreign sources over a five-year span. This reliance on international donations is claimed to be influencing their operational agendas within India. The Income Tax Department's findings suggest that the organisations are not only financially intertwined, but also share key personnel, further linking them in their missions.

According to the IT letters, which span over 100 pages each, there are serious allegations against these NGOs regarding violations of the Foreign Contribution Regulation Act. These include discrepancies in their annual returns and potential misutilisation of foreign funds. Following these findings, the FCRA licences for these organisations were revoked, leading to ongoing legal battles in the Delhi High Court.

Key Allegations

Oxfam is accused of supporting international campaigns against Indian corporations, notably targeting the Adani Group. The IT department cited communications suggesting that Oxfam India played a role in efforts to undermine Indian businesses, alleging a “sinister plan” linked to foreign interests, Indian Express reported.

CPR faces claims of mismanaging foreign donations, with the department asserting that it is involved in the Hasdeo movement against coal mining. The department claims that the think tank is primarily focused on litigation rather than research, undermining its stated objectives.

Environics Trust is alleged to have funded local protests against significant industrial projects, including a steel plant by JSW, and is implicated in broader anti-development activities through its connections with international organisations by the department.

LIFE is said to be closely associated with foreign NGOs, specifically Earth Justice, and is accused of stalling coal projects in India through legal avenues.

The IT department has said that these NGOs are “working in concert,” with evidence of mutual funding and support to bolster anti-development agendas.

In light of these allegations, Ritwick Dutta, founder of LIFE, has refuted claims of interconnection among the NGOs, insisting that the organisation operates independently and does not collaborate with Oxfam, CPR, or Care India. Officials from Environics Trust did not provide comments, while requests for responses from Oxfam, CPR, and CISSD went unanswered, the Indian Express report said.