In a Deepawali ‘gift’ to the Congress, the Centre has cancelled the Foreign Contribution Regulation Act (FCRA) licences of the Rajiv Gandhi Foundation (RGF) and Rajiv Gandhi Charitable Trust (RGCT), headed by former Congress president Sonia Gandhi. The two entities will now not be able to accept foreign donations to carry out their activities.
The Union Home Ministry took the decision on Saturday evening after the probe initiated by it in July 2020 pointed to a series of irregularities and violations in accepting foreign donations by the two NGOs.
The Home Ministry has sent notices informing about the cancellation of the FCRA licence to the office-bearers of the RGF and RGCT, said officials. Sonia Gandhi is the chairperson of both NGOs and other trustees include former Prime Minister Manmohan Singh, former Finance Minister P Chidambaram, Rahul Gandhi, Priyanka Gandhi Vadra, Montek Singh Ahluwalia and Suman Dubey.
Set up in 1991, the RGF works in the health and education sectors primarily with women and children and also provides disability support. The RGF came under the scanner in July 2020, when the MHA set up an inter-ministerial committee headed by an Enforcement Directorate (ED) officer to investigate three Gandhi family foundations — RGF, RGCT and Indira Gandhi Memorial Trust — for alleged violations of the money laundering Act, Income Tax Act and FCRA. The committee comprised officers from the Home and Finance Ministries and the CBI. In 2015, BJP leader Subramanian Swamy filed a complaint with the Urban Development Ministry on the alleged illegal use of prime land captured by the RGF. The prime land was allotted to the Congress Party AICC to construct AICC headquarters in 1988. But in June 1991, Sonia Gandhi formed the RGF and occupied the building meant for the Congress Party.
Many corporates have given huge donations to the RGF and RGCT under their Corporate Social Responsibility (CSR) scheme and the NGOs have also received foreign donations from various sources, including many Embassies working in India.
BJP president JP Nadda had accused these NGOs of accepting money from various Embassies including from China, and fugitives like Zakir Naik and Mehul Choksi. Nadda had also alleged that money from the Prime Minister’s Relief Fund was diverted to the RGF.
According to the RGF’s annual report of 2005-06, which is available on its website, the Embassy of the People’s Republic of China is listed as one of its donors under “partner organisations and donors”.
The BJP had also raised a question that whether the funds received by the RGF were a “bribe” for lobbying for a free-trade agreement between India and China.
Reacting to the development, the Congress on Sunday hit back at the Centre saying the move was aimed at diverting public attention from the main issues being faced by the country. “They (Centre) recycle old charges against the RGF and RGCT. This is to defame the Congress and divert public attention from issues of day-to-day concern to them,” said Congress general secretary, communications, Jairam Ramesh. “The economy is in deep crisis caused by spiralling prices, unemployment and a falling rupee,” he said.