Income Tax Enquiry Reports Foreign Funding Responsible for Stalling India’s Economic Projects

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Income Tax, India, Development Projects, Economics, NGOs, Politics

New Delhi: A recent Income Tax (I-T) investigation into the country’s select non-governmental organisations (NGOs) has revealed their alleged linkages to foreign funding and engagement in activities impeding important economic and developmental projects.

The I-T probe, which began on September 7, 2022, at the offices of Oxfam, the Centre for Policy Research (CPR), the Environics Trust, the Legal Initiative for Forest and Environment, and Care India Solution for Sustainable Development, alleges that these NGOs have been involved in activities that have stalled major economic and developmental projects in the country.

According to a story in The Indian Express, over five years, almost 75% of the money for four of the five NGOs came from foreign sources. The study cited documents that reliance on outside funds influences their operational agendas in India.

The report’s findings indicate that NGOs are financially intertwined and share key staff, which further links them in their missions.

The investigation’s allegations include irregularities in their annual returns and possible misuse of foreign cash. Following these findings, the Foreign Contribution Regulation Act (FCRA) licenses for these groups were cancelled, resulting in current legal proceedings in the Delhi High Court.

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Oxfam is accused of reportedly backing worldwide campaigns against Indian firms, particularly targeting the  Adani Group. The CPR faces claims of mismanaging foreign donations, with the department asserting that it is involved in the Hasdeo movement against coal mining.

According to the I-T investigation, Environics Trust is accused of funding local protests against major industrial projects, including a steel plant by JSW, and is linked to broader anti-development actions through its connections with foreign organisations, according to the department.

The NGO LIFE is reported to be deeply affiliated with foreign NGOs, notably Earth Justice, and has been accused of using legal means to obstruct coal projects in India.

Ritwick Dutta, the founder of LIFE, has denied charges of interconnection among NGOs, saying that the organisation acts autonomously and does not collaborate with Oxfam, CPR, or Care India. Other NGOs did not immediately respond to the report.

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–IANS

 

 

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