The Ministry of Home Affairs (MHA) on Thursday recommended a CBI investigation into allegations that Oxfam India violated the Foreign Contribution (Regulation) Act, 2010, by engaging in social activities.

According to MHA sources, Oxfam India continued to transfer funds received from abroad to various entities despite the fact that the Foreign Contribution (Regulation) Amendment Act of 2020 prohibited such cash transfers.

The Central Board of Direct Taxes informed the MHA of the alleged irregularities committed by Oxfam in the handling of its foreign funds. The FCRA amendments came into force on September 29, 2020.

MHA sources said, “Oxfam India transferred funds to other NGOs, violating provisions of the FCRA, 2010. From emails, found during the IT (Income Tax) survey by the CBDT, it is revealed that Oxfam India was planning to circumvent the provision of the FCRA, 2010, by routing funds to other FCRA-registered associations or through the for-profit consultancy route”.

According to MHA officials, the IT survey also exposed Oxfam India as a possible instrument of the foreign policy of foreign organizations/entities that have generously funded Oxfam India over the years. The global NGO, which is registered in India to carry out social activities, routed funds to the Delhi-based think tank Centre for Policy Research (CPR) in the form of a commission through its associates/employees.

On February 27, 2023, the MHA revoked the CPR’s FCRA registration after IT surveys allegedly revealed that the think tank violated foreign funding regulations.

According to MHA sources, the diversion of funds is also reflected in Oxfam India’s TDS data, which shows payment of Rs 112,71,188 to the CPR in the fiscal year 2019-20 under section 194J. Instead of receiving foreign contributions in designated FCRA accounts, Oxfam India received Rs 1.50 crore (approx) directly into its FC utilization account.

The government’s crackdown on NGOs suspected of violating prescribed rules had landed Aman Biradari, founded by well-known author and activist Harsh Mander, in hot water. The Home Ministry recommended a CBI investigation into NGO Aman Biradari for FCRA violations.

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