Centre cracks the whip on NGOs, direct foreign funding put on hold

Acting on Intelligence Bureau`s recommendation, the Ministry of Home Affairs on Thursday put on hold direct funding of NGOs from abroad.

By Ajith Vijay Kumar | Last Updated: Jun 19, 2014, 13:47 PM IST

Zee Media Bureau/Ajith Vijay Kumar

New Delhi: Acting on Intelligence Bureau`s recommendation, the Ministry of Home Affairs on Thursday put on hold direct funding of NGOs from abroad.

The MHA has directed the Reserve Bank of India of Indian to put on hold foreign funding to NGOs. Also, NGOs will have to inform the RBI prior about any funding they receive from abroad.

The Centre`s action came a day after the IB prepared yet another report on NGO Greenpeace, recommending cancellation of permission given to it for collecting funds abroad besides reassessment of its tax compliance.

The IB had sought that foreign donations to the Greenpeace be put on "prior category" list so that permission is taken before any money flows in for funding their activities.
The report has also listed 12 foreign nationals who have been associated with some NGOs in their campaign against coal mines, power projects and nuclear power plants.

The IB in an earlier report `Impact of NGOs on Development` had expressed fear that opposition to several development projects in the country by a significant number of NGOs will have a negative impact on economic growth by 2-3%.

It also claimed some NGOs and their international donors are also planning to target many fresh economic development projects.

The Greenpeace has rubbished the IB report and claimed that the organisation has committed no irregularities.
The MHA order came on a day when anti-nuclear activist Udayakumar, who had contested as Aam Admi Party (AAP) candidate from Kanyakumari in the Lok Sabha polls, sent a legal notice to Home Ministry over IB report on foreign-funded NGOs

The AAP has slammed the IB report and termed it as an attempt towards "criminanalisation of dissenting voices".