New Delhi: The Income Tax department under the Narendra Modi-led Union government has told the Supreme Court that non-governmental organisations are trying to stall public projects and affect Indian economic interests through foreign funding.
One of the noteworthy lines of action taken up by the Modi government in its latest term has been the cancellation of the Foreign Contribution (Regulation) Act registrations of thousands of prominent NGOs, over alleged violations and misuse of funds. This cancellation has cut off a vital source of funding for these NGOs. Many such NGOs focused on research and service that had been instrumental in alleviating suffering during the COVID-19 pandemic.
Now, the government appears to have claimed that foreign entities are engaged in a “concerted effort” in funding Indian NGOs and trusts with a view towards stopping India’s economic growth.
The Indian Express has reported that a bench of Justices Sanjiv Khanna and Dipankar Datta was hearing an appeal of an NGO – Environics Trust – challenging a November 8 order of the Delhi high court on a notice issued to it under Section 148 of the Income Tax Act, 1961. This provision allows the department to assess tax returns again.
The I-T department said out that Rs 13.66 crore of the Rs 14.27 crore that the Trust had received from 2016 to 2021 was by way of foreign contributions. It accused the Trust, which looks at environmental concerns, of fomenting protests where projects are afoot, accusing it of funding agitation in Odisha villages by giving Rs 1,250 “to those who were involved in the said protests and named in the FIR registered in this regard.”
The I-T department also claimed that it had evidence “such as MoU between a foreign entity ‘Both ENDS’ and the…Trust dated 01.09.2020 which make it clear that…Trust was involved in the said protests in Odisha. These protests were apparently funded by ‘Fair Green and Global Alliance’, which consists of 6 Dutch member Organization (sic).”
It also claimed that there was an agreement between Oxfam India and the Environics Trust, ostensibly to mobilise communities against coal industries. Oxfam is known for its reports on poverty. In 2023, the Central Bureau of Investigation (CBI) registered a case against the NGO for violating the conditions of its foreign funding license and attempts to pressure the Union government to renew the licence by using foreign governments and institutions.
The Trust “was found to be involved with Mineral Inheritors Right Association (MIRA) for protesting against Steel and Coal Projects in Odisha that is not as per the objects of the Trust…”.
Under the Modi government, the I-T department has raided news organisations including Newsclick and BBC, and imposed hurdles on opposition parties ahead of the elections.
