Centre Cancels FCRA Licence Of Organisation Founded By Activist Wangchuk Over Financial 'Discrepancies'

The Union Home Ministry terminated the Foreign Contribution Regulation Act (FCRA) licence of Students' Educational and Cultural Movement of Ladakh (SECMOL), founded by climate activist Sonam Wangchuk, effective immediately, a government order said on Thursday.

FCRA licence is a mandatory certificate issued by the Union Home Ministry to organisations like NGOs, societies, and trusts, allowing them to legally receive and utilise funds from foreign sources for specified activities.

A fund transfer from Sweden, which the ministry found was against "national interest" was among the many alleged discrepancies detected in the accounts of the organisation, on the basis of which the ministry took action.

The development comes a day after four persons were killed in clashes between protesters supporting the movement for statehood to Ladakh and security personnel amid a shutdown in Leh. The government blamed Wangchuk for the mob violence.

The Wangchuk-led organisation was granted the licence to accept foreign contribution for undertaking cultural and educational programme, the order said.

Besides SECMOL, Wangchuk had also founded the Himalayan Institute of Alternatives Ladakh, which is facing CBI inquiry relating to alleged Foreign Contribution (Regulation) Act, or FCRA, violations.

The home ministry had earlier issued a show cause notice to SECMOL seeking explanation on various irregularities observed in the finances of the organisation.

It was alleged that during financial year 2021-22, Wangchuk deposited Rs 3.5 lakh into the FCRA account in violation of Section 17 of the Act.

According to the explanation given by SECMOL, it was the sale proceeds of the old bus procured on July 14, 2015, out of FCRA funds. It said the sale proceeds for any asset which was procured from FCRA's funds need to be deposited only in FCRA's account as per the guidelines.

The ministry said that the amount has been received in cash in violation of Section 17 of the Act, which is not properly disclosed by the organisation in its reply.

"Further, an amount of Rs 3.35 lakh has been intimated by the association...as FC donation from Sonam Wangchuk. However. this transaction is not reflected in FCRA Account in violation of section 18 of the Act," it said.

The ministry also red flagged another transfer of Rs 54,600 local funds in FCRA accounts of the organisation which the latter claimed a mistake.

A foreign contribution from Sweden of around Rs 4.93 lakh for creating awareness among youth on issues such as migration, climate change, global warming, food security and sovereignty and organic farming through different workshops and trainings is also under the scanner of the ministry.

Citing several other discrepancies in the accounts of the organisation, the home ministry, in its order issued on Thursday, said it invoked its powers under Section 14 of the FCRA to cancel the licence granted to the organisation with immediate effect.

Earlier in the day, Wangchuk alleged that the government was building a case against him to put him behind bars. The activist, who has been leading the peaceful agitation for statehood and constitutional safeguards for Ladakh, also raised the alarm over his personal safety.

"I see they are building up a case to bring me under the Public Safety Act and throw me in jail for two years," he said.

"I am ready for that, but Sonam Wangchuk in jail may cause them more problems than free Sonam Wangchuk," he added.

(With PTI Inputs)