MHA cancels registration of Teesta Setalvad’s NGO

The Union home ministry on Thursday cancelled the registration of Sabrang Trust, an NGO managed by social activist Teesta Setalvad, nearly nine months after it had suspended the trust’s licence. Home ministry officials claimed a detailed inquiry had found violations into Sabrang’s funding and its utilisation.

“In exercise of powers conferred by Clauses (b), (c) and (d) of sub-section (1) of Section 14 of the Foreign Contribution (Regulation) Act 2010, the Central government hereby cancels the permanent registration of Sabrang Trust with immediate effect,” the home ministry order said.

“During inspections, various irregularities were found in Sabrang Trust, where Teesta Setalvad and her spouse, Javed Anand, work as chief functionary or trustee, and after careful examination of the NGO’s response, its registration was cancelled,’’ the order stated.

Sources said investigations reveal that Sabrang Trust had spent over 50 per cent of its foreign funding on administrative expenses in the year 2010-11 and 2011-12 which was in violation of Section 8 of FCRA. The organisation, sources added, had also spent Rs 50 lakh for Sabrang Communications & Publishing Pvt Limited (SCPPL), a private company, which used the funds for publishing. “Ms Setalvad and Mr Anand are also working as directors, co-editors, printers and publisher in SCPPL and published a magazine called Communalism Combat,” a home ministry official said.

Sabrang Trust, officials added, had spent the amount in clear violation of the mandate of the FCRA. By this action, the NGO has not only unauthorisedly utilised the foreign contribution for the purposes of an unregistered entity, but also that entity being a self-owned media and publication company, utilised that amount for activities totally prohibited by FCRA, the order states.

The order said the NGO has transferred an amount of Rs 2.46 lakh from its foreign contribution designated account to Sabrang Trust domestic account, thus mixing of domestic and foreign funds and violating the rules.

Sabrang Trust had also made direct payments of nearly Rs 12 lakh from FCRA designated account to Citi Bank and Union Bank of India on account of credit cards belonging to Ms Setalvad and Mr Anand. Since the credit cards are issued in the name of the individuals the said payments of the foreign contribution shall be treated to have been used for personal gain, the Home Ministry said.

It was also revealed that in 2010-11, the NGO incurred 64.23 per cent of the foreign contribution on administrative expenditure and during 2011-12, it incurred 55.14 per cent on administrative expenses without obtaining the prior approval of the central government, which is in violation of FCRA. The rules clearly state that if an NGO’s administrative expenses exceed 50 per cent of total foreign donations, the organisation needs an approval from the Home Ministry.

Ms Setlavad has been involved with the victims of the Gujarat riots and helped them fight legal cases. Another NGO run by them, Citizens for Justice and Peace, has already been put under prior permission category, thus making it mandatory for the organisation to take permission from the Home Ministry before accepting or utilising any foreign contribution.

Following a recommendation of the Home Ministry, CBI has already registered a case and launched a probe against Sabrang Communication and Publishing Pvt Limited for allegedly accepting and utilising foreign contribution in violation of FCRA.