FCRA licence of Wangchuk NGO cancelled

FCRA licence of Wangchuk NGO cancelled
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As the Government tightens the noose on educationist and climate activist Sonam Wangchuk and his institutions amid Ladakh protests, the Ministry of Home Affairs (MHA) on Thursday cancelled the FCRA licence of Students’ Educational and Cultural Movement of Ladakh (SECMOL), an NGO founded by him with “immediate effect”. The action of the ministry was based on several alleged discrepancies detected in the accounts of the organisation, including a fund transfer from Sweden, which the ministry found was against “national interest”.

The development comes a day after four people were killed in widespread clashes between protesters supporting the movement for statehood to Ladakh and security personnel amid a shutdown in Leh. The Ministry has blamed Wangchuk for the mob violence. 

The order noted that SECMOL’s FCRA registration certificate number 152710012R, which allowed the organisation to accept foreign contributions for educational and cultural programmes, was liable for cancellation following multiple violations of the Act. Besides SECMOL, Wangchuk also founded the Himalayan Institute of Alternatives Ladakh (HIAL) which is facing a Central Bureau of Investigation (CBI) inquiry for alleged violations of the Foreign Contribution (Regulation) Act, or FCRA, norms. Reacting to the development, Wangchuk said that he was just a donor for the organisation and that he teaches there. The activist also said he did not know about the cancellation of the FCRA licence.

Earlier in the day, he alleged that the Government was building a case against him to put him behind bars. “I see they are building up a case to bring me under the Public Safety Act and throw me in jail for two years,” he said. “I am ready for that, but Sonam Wangchuk in jail may cause them more problems than free Sonam Wangchuk,” Wangchuk added.

The Ministry’s findings cited unauthorised deposits, misallocation of funds, and foreign contributions for purposes inconsistent with national interest. The Wangchuk-led organisation was granted the licence to accept foreign contributions for undertaking cultural and educational programme, the order said. SECMOL was granted the licence to accept foreign contributions for undertaking cultural and educational programme, the order said.

The MHA had earlier issued a show cause notice to SECMOL seeking explanation on various irregularities observed in the finances of the organisation.  It was alleged that during financial year 2021-22, Wangchuk deposited `3.5 lakh into the FCRA account of the association in violation of section 17 of the Act. According to the explanation given by SECMOL, it was the sale proceeds of the old bus procured on July 14, 2015 out of FCRA funds. It said the sale proceeds for any asset which was procured from FCRA’s funds need to be deposited only in FCRA’s account as per the guidelines.

MHA cancels licence of Wangchuk NGO

The ministry said that the amount has been received in cash in violation of section 17 of the Act which is not properly disclosed by the organisation in its reply. “Further, an amount of Rs 3.35 lakh has been intimated by the association. As FC donation from Sonam Wangchuk. However this transaction is not reflected in FCRA account in violation of Section 18 of the Act,” it said.

The ministry also red flagged another transfer of Rs 54,600 local funds in FCRA accounts of the organisation which the latter claimed a mistake.  A foreign contribution from Sweden of around Rs 4.93 lakh for creating awareness among youth on issues such as migration, climate change, global warming, food security and sovereignty and organic farming through different workshops and trainings is also under the scanner of the ministry.

Rejecting the arguments of SECMOL that the funds were utilized strictly in line with the organisation’s objectives for educational purposes only, the ministry has said the foreign contribution cannot be accepted for study on sovereignty of the nation as it is against “national interests”.  Citing several other discrepancies in the accounts of the organisation, the home ministry, in its order issued on Thursday, said it invoked its powers under Section 14 of the FCRA to cancel the licence granted to the organisation with immediate effect.

Besides, the CBI has initiated a preliminary inquiry into alleged FCRA violations against the Himalayan Institute of Alternatives Ladakh (HIAL). The official said the preliminary inquiry was launched approximately two months ago, following a complaint from the Ministry of Home Affairs (MHA), but no FIR has been registered yet and investigation is still ongoing. The agency has initiated a PE - precursor to the first information report (FIR) to ascertain if a case is made out - against Wangchuk and Himalayan Institute of Alternatives Ladakh (HIAL) about two months ago based on a reference from the ministry of home affairs (MHA).

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