FCRA violations: CBI searches at 40 places of NGOS, MHA officials

The Central Bureau of Investigation (CBI) on Tuesday conducted search operations at 40 locations across the country against officials of the Ministry of Home Affairs (MHA), non-profit organisations (NGOS), and others for allegedly violating foreign grant rules, sources privy to the development told Business Standard.

The action follows a complaint filed by the MHA against these officials, NGOS, and middlemen for breaching the Foreign Contribution (Regulation) Act (FCRA).

The searches were underway in multiple cities, including Delhi, Chennai, Hyderabad, Coimbatore, Mysore, and some places in Rajasthan, the sources quoted above said.

At least six officials of the MHA’S FCRA division (which approves registration and grants), along with NGO representatives and middlemen, were found involved in illegal clearances of foreign donations in lieu of hefty bribes, it has learnt.

During the searches, the agency held some government officials for taking bribes from NGOS through middlemen. It also found ~2 crore of hawala transactions, trails of which were being examined. The federal agency could book some more officials later in the night, the sources indicated.

Sources said the searches would continue this week as several more are under CBI’S radar.

The agency is also probing a possible money laundering angle.

It came to light that several public officials from MHA, NGO representatives, and middleman exchanged money to facilitate the foreign donations in violation of FCRA, 2010, they said. The Centre amended the FCRA in 2020 allowing conducting an enquiry before a renewal and giving organisations of surrendering the licence if an organisation doesn’t want it. There are about 16,000 registered organisations under FCRA.