Big SETBACK for Congress, Home Ministry cancels FCRA licences of 2 NGOs headed by Sonia Gandhi

The action has been taken on the basis of an inquiry by an inter-ministerial committee constituted by the Ministry of Home Affairs in 2020. After the investigation against Rajiv Gandhi Foundation and Rajiv Gandhi Charitable Trust, the FCRA license has been canceled by the Ministry of Home Affairs.

The Home Ministry has canceled the Foreign Contribution Regulation Act (FCRA) licenses of two non-governmental organizations (NGOs), Rajiv Gandhi Foundation (RGF) and Rajiv Gandhi Charitable Trust (RGCT), led by Congress leader Sonia Gandhi. The reason for this has been found to be in violation of FCRA rules. With the cancellation of the license, both these organizations will not be able to receive donations from abroad. According to some media reports, the Home Ministry gave this information on Sunday. However, no official statement had been issued in this regard till the time of writing this news.

Allegations Against NGOs

Sources said that this action has been taken on the basis of an inquiry by an inter-ministerial committee constituted by the Ministry of Home Affairs in 2020. In this regard, an official said that after the investigation against Rajiv Gandhi Foundation and Rajiv Gandhi Charitable Trust, the FCRA license has been canceled by the Ministry of Home Affairs. Investigators had probed allegations of money laundering, misappropriation of funds and falsification of documents while filing income tax returns while receiving money from abroad, including China.

Trustees of NGOs

Former Congress President Sonia Gandhi is the chairperson of RGF and RGCT. Other trustees of the RGF include former Prime Minister Manmohan Singh, former Finance Minister P. Chidambaram, Congress leader and MP Rahul Gandhi, Congress General Secretary Priyanka Gandhi Vadra, Montek Singh Ahluwalia, Suman Dubey and Ashok Ganguly. While the trustees of RGCT include Rahul Gandhi, Ashok Ganguly, Bansi Mehta and Deep Joshi.

All About the NGOs

According to the website of RGF, it was established in 1991. From 1991 to 2009, RGF worked in many important areas: the health, science and technology and the education sectors, besides helping women, children and disabled people. RGCT was established in 2002 to meet the development needs of the underprivileged sections of the country, especially the poor living in villages. According to the RGCT's website, it works through two development initiatives: Rajiv Gandhi Mahila Vikas Pariyojana (RGMVP) and Indira Gandhi Eye Hospital and Research Center (IGEHRC) in Haryana, besides Uttar Pradesh, among the least developed states in the country.

Both RGF and RGCT have their offices at Jawahar Bhawan, Rajendra Prasad Road near Parliament Complex in New Delhi. These NGOs came under scanner after the Ministry of Home Affairs in July 2020 set up an inter-ministerial committee headed by an Enforcement Directorate (ED) officer to probe possible violations of the Prevention of Money Laundering Act (PMLA), Income Tax Act and FCRA. A total of three organizations affiliated to the Congress were investigated. The third of which is the Indira Gandhi Memorial Trust. But nothing has been said about it yet.

Their FCRA licenses have been suspended following malpractices in two organizations. Apart from this, legal action can also be taken against the operators of the organizations for the irregularities, but it depends on the level of the disturbances.

Congress Reacts

The Congress has targeted the central government over the action against the Rajiv Gandhi Foundation (RGF) and the Rajiv Gandhi Charitable Trust (RGCT), saying that this action has been taken to divert the attention of the people from the main issues of the country. The Congress's remarks came after the central government canceled the Foreign Contribution Regulation Act (FRCA) licenses to Sonia Gandhi-led organisations- RGF and RGCT- for alleged violation of the law. Congress general secretary Jairam Ramesh said, "They (Centre) have repeated old allegations against RGF and RGCT. This has been done to defame the Congress and divert the attention of the people from daily issues."