The Income Tax Department’s probe into these NGOs came after searches conducted on September 7, 2022. These searches were part of a larger investigation into the financial practices, foreign funding, and compliance with the Foreign Contribution (Regulation) Act (FCRA) by these organizations.
The IT Department’s raids focused on uncovering discrepancies in the financial dealings of these NGOs, particularly concerning the utilization of foreign donations. The government has been scrutinizing such organizations amid concerns over their financial transparency and potential misuse of funds. The searches reportedly yielded documents and evidence suggesting violations of tax laws and FCRA regulations.
Following the searches conducted by the Income Tax Department, it was concluded that NGOs, including Oxfam, CPR, Environics Trust, LIFE, and CISSD, had allegedly violated provisions of the 2010 Foreign Contribution Regulation Act (FCRA). The violations were primarily related to discrepancies or a “mismatch” between the NGOs’ annual returns and the statements of their foreign currency bank accounts. Additionally, the NGOs were accused of the “misutilisation” of foreign currency funds, implying that the funds were not used for their intended purposes as stipulated under the FCRA.
According to a report by The Indian Express, in 2023, a year after the raids were conducted, the Income Tax Department issued notices to Oxfam, CPR, Environics Trust, LIFE, and CISSD, under Section 148 of the Income Tax Act. This section allows authorities to reassess the income of entities suspected of evading taxes.
In its letters to these NGOs, which ran in 100s of pages, the department included copies of various agreements, financial statements, emails, minutes and draft notes of board meetings, to substantiate the key allegations levelled against these NGOs.
The letter read that these NGOs receive significant funding from foreign entities. It said that evidence had surfaced showing a coordinated effort by foreign entities to financially support Indian NGOs and trusts. The IT Dept also blew the lid off how the involvement of these NGOs in orchestrating paid protests to stall key public infrastructure and development projects in India’s national interest.
The activities of these trusts “appear to be a systematic effort by foreign entities to stall development projects in India”, the Income Tax department said.
According to the data made public by the Income Tax Department, from 2015 to 2021, NGOs such as Care India, Environics Trust, LIFE, and Oxfam received a significant portion of their funding from foreign sources. Care India allegedly obtained 92% of its funding from abroad, Environics Trust received 95%, LIFE 86%, and Oxfam 78%. Notably, Environics Trust reportedly received 100% of its funding from foreign entities for three out of these six years.
The Income Tax Department also highlighted that these five NGOs are “interconnected” and that their key figures are “interlinked.” The letters sent to four of the five NGOs — Oxfam, Environics Trust, LIFE, and Care India — contained a common section titled “Concerted efforts by connected NGOs,” implying coordinated actions among these organizations. The department’s investigation suggested that these NGOs might have collaborated, raising further concerns about their operations and foreign funding sources.
‘Should work for the benefit of the public as a whole and not the benefit of any particular religious community or caste (the Muslim community)’: IT letter to Oxfam India accuses the NGO of running a ‘sinister campaign’ under the guise of charitable activities
In its 141-page letter to Oxfam India, the Income Tax (I-T) department said that the NGO engaged in activities that deviated from its stated charitable objectives. The letter highlighted Oxfam India’s alleged involvement in supporting Oxfam Australia’s efforts to halt mining operations by the Adani Group.
Citing emails and data from hard drives, the I-T department stated that Oxfam India had a direct interest in “delisting Adani Ports” and described it as part of a “sinister plan” under the guise of charitable activities to target an Indian business group in Australia.
The letter also pointed to Oxfam’s financial involvement in movements like the Van Swaraj Andolan in Raipur in 2019 and its sub-grants to organisations such as Josh (for social health) and Aman Biradari Trust.
It alleged that after the cancellation of its Foreign Contribution Regulation Act (FCRA) licence, Oxfam sought “puppet NGOs” with valid permissions to redirect funds for its causes. Furthermore, the I-T department said that Oxfam India had a “political agenda” and accused the NGO of focusing its efforts on benefiting a particular religious community, specifically the Muslim community, rather than serving the public as a whole.
Notably, Oxfam India has a tendency to work against the central government. On the international platform, Oxfam International is one of the front runners that has worked against the Adani Group in countries like Australia, where the company is investing in coal mines.
It may be recalled that last year, the Union Ministry of Home Affairs had recommended a CBI probe against Oxfam India over alleged violations of the Foreign Contribution Regulation Act. According to reports, a source in the Ministry of Home Affairs said, “Oxfam India continued to transfer Foreign Contributions to various entities even after coming into force of the Foreign Contribution (Regulation) Amendment Act, 2020 which prohibits such transfers. The amendment came into force on September 29, 2020. Oxfam India transferred funds to other NGOs, violating provisions of the FCRA, 2010.”
“Oxfam India received foreign contribution amounting to Rs 1.50 crore (approx) directly into its FC utilization account instead of receiving foreign contribution in designated FCRA account,” added the sources.
Oxfam India was registered under the Foreign Contribution (Regulation) Act 2010 (FCRA, 2010) for undertaking social activities and its registration certificate was valid up to December 31, 2021. The organisation’s FCRA license ceased on January 1, 2022, after it failed to apply for renewal.
In January last year, Oxfam India published a dubious report on how taxpayers are divided among income sections. OpIndia’s report on it can be read here.
IT letter says controversial think tank Centre for Policy Research received foreign funds of Rs 10.19 crore since 2016
The 115-page letter from the Income Tax (I-T) department outlined several discrepancies related to fund collection and the management of foreign donations by the controversial Delhi-based think tank- Centre for Policy Research (CPR). It alleged that CPR was significantly involved in the Hasdeo movement against coal mining in Chhattisgarh, particularly through its association with the Jana Abhivyakti Samajik Vikas Sanstha (JASVS). According to the I-T department, a staggering 83% of the funds received by JASVS between 2019 and 2023 were sourced from CPR.
The letter further revealed that CPR received foreign funds amounting to Rs 10.19 crore since 2016 specifically for its Namati Environmental Justice Programme, which aims to file “litigation and complaints.” The I-T department characterised CPR as the sole associate of the US-based Namati Inc. in India, claiming that the programme’s ultimate objective is to pursue legal actions rather than conduct specified research or educational activities.
This raised concerns about the true intentions behind the funding and activities of CPR, suggesting a shift away from traditional non-profit objectives, prioritising litigation over community welfare.
For the uninitiated, a report by The Economic Times stated that during the period of October 2022-December 2022, CPR received funds amounting to Rs 10.1 crore from the Bill and Melinda Gates Foundation, the University of Pennsylvania, the World Resources Institute and Duke University.
The think tank is headed by Yamini Aiyar, the daughter of controversial Congress leader Mani Shankar Aiyar.
IT Dept accuses NGO LIFE of being utilized as a tool by the US-based NGO Earth Justice to impede coal mining and thermal power projects in India
The revelations contained within the Income Tax Department’s 86-page letter concerning the Legal Initiative for Forest and Environment (LIFE) Trust raised significant concerns about the organisation’s potential complicity in foreign agendas aimed at obstructing key developmental projects in India.
The letter alleged that LIFE is being utilized as a tool by the US-based NGO Earth Justice to impede coal mining and thermal power projects, casting doubt on the true motives behind its environmental advocacy.
According to the IT Department, communications between LIFE founder Ritwick Dutta and an Earth Justice official indicate that the organisation is aware of its questionable practices and the risks associated with them. Notably, an email purportedly authored by Dutta expresses apprehension about scrutiny from Indian intelligence agencies, highlighting a consciousness of potential legal repercussions tied to their actions. This acknowledgement suggests a troubling awareness of operating on the fringes of legality, as Dutta had previously run a proprietorship that received substantial funding from Earth Justice, amounting to approximately Rs 22 crore over five years.
Environics Trust got 100 per cent of its funds through foreign donations during three financial years — 2016-17, 2019-20 and 2020-21
Similarly, the IT department sent a 104-page letter to Environics Trust in which it outlined some serious allegations against the NGO regarding its funding activities and involvement in anti-corporate protests.
The letter stated that ET provided financial support for protests against the JSW Utkal Steel Plant in Odisha’s Dhinkia, with Rs 1,250 being transferred to the accounts of 711 local residents in 2020. This assertion suggested a coordinated effort to financially incentivise local opposition against significant industrial projects.
Furthermore, the letter alleged that ET colluded with the London-based Survival International to incite protests against Adani’s Godda Plant in Jharkhand, thereby aiming to bolster the anti-Adani movement.
It characterised these actions as a misuse of funds intended for community development, accusing the organization of deliberately stalling developmental projects in India.
Additionally, the letter pointed to ET’s involvement in protests against LG’s polymer chemical plant in Visakhapatnam, specifically following a gas leak incident in 2020. It alleged that an ET employee instigated various groups associated with the Trust to participate in the protests against LG, thereby exacerbating tensions surrounding environmental safety.
The I-T department further asserted that the European Climate Foundation (ECF), in collaboration with Environics Trust, is actively targeting coal and thermal power plants in India. It suggested that ECF is supplying funds with the intent to incite mobilisation and protests against major corporations, including government entities.
The Income Tax (I-T) Department’s investigations into Environics Trust (ET) reveal alarming insights into how the organisation has functioned as a conduit for foreign influence, primarily targeting India’s energy sector and obstructing the nation’s developmental agenda.
The allegations suggest that ET, through its funding and activities, has aligned itself with foreign entities, particularly the European Climate Foundation (ECF), to mobilise protests against significant industrial projects, including coal and thermal power plants. This raises critical questions about the accountability and objectives of such non-governmental organizations (NGOs) within the broader context of national interests.
How these NGOs worked in cahoots to jeopardize India’s economic development
Here it is worth mentioning that the IT department had in an affidavit submitted to the Supreme Court also confirmed that in the case of Environics Trust, survey action was carried out along with some other trusts like the Centre for Policy Research (CPR), Oxfam India, Legal Initiative for Forest and Environment (LIFE) and Care India Solution for Sustainable Development (CISSD) and it was seen that these organisations have close relations with each other.
Moreover, their main persons are interlinked and these NGOs are directly or indirectly involved in agitation or litigation beyond their objects, the department said.
The Income Tax (I-T) Department’s findings suggest a concerning nexus between the Environics Trust (ET) and the Legal Initiative for Forest and Environment (LIFE), both of which are accused of leveraging foreign funds to undermine India’s economic development.
According to the I-T Department, Ritwick Dutta, who leads LIFE, has been instrumental in representing ET in various legal challenges against the Union Government, ostensibly under the guise of environmental protection. However, the department alleged that these legal manoeuvres have primarily served to obstruct critical economic projects, particularly in the coal sector, rather than promote genuine environmental interests.
The department also said that both organizations are part of a broader strategy to impede coal projects in India, effectively stalling initiatives that are vital for the country’s energy needs and economic growth.
The findings from the Income Tax (I-T) Department further indicated a troubling relationship between Oxfam India and the Environics Trust (ET).
The department identified Oxfam India as a “key donor” that has funded ET specifically to mobilise local communities against coal industries, including support for protests like those in Dhinkia. The IT probe cited various banking transactions as evidence of this continuous financial support, concluding that ET functions effectively as a tool for Oxfam’s agitation-oriented activities.
Furthermore, the investigation highlighted a broader pattern of collaboration among various NGOs, including LIFE, Earth Justice, and Greenpeace, suggesting a coordinated effort to influence policy and mobilise public sentiment against developmental projects in India.
Such interconnectedness raises concerns about the potential for these NGOs to disrupt the country’s progress under the guise of environmental activism. As the investigation unfolds, it becomes increasingly important to scrutinize the motivations and activities of these organizations to ensure that their actions genuinely reflect the interests of the communities they claim to serve and that they adhere to the legal and ethical standards expected of NGOs in India.
