The ministry of home affairs has revoked the Foreign Contribution (Regulation) Act (FCRA) licence of the Students’ Educational and Cultural Movement of Ladakh (SECMOL), led by education reformist Sonam Wangchuk, citing multiple violations of the law following a Central Bureau of Investigation (CBI) inquiry.
According to official findings, SECMOL received and deposited foreign contributions in contravention of Sections 8, 12, 17, 18 and 19 of the FCRA.
Authorities said that in 2021-22, Wangchuk deposited Rs 3.35 lakh in SECMOL’s FCRA account in violation of Section 17.
While the association explained that the amount was the sale proceeds of an old bus purchased with FCRA funds and thus rightly deposited, the government pointed out discrepancies between its annual returns and actual bank credits and termed the explanation “untenable.”
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.
Section 17 of the FCRA mandates that individuals or entities registered under the Act must receive foreign contributions exclusively in an "FCRA Account" opened at a designated branch of the State Bank of India (SBI) in New Delhi.
The ministry also flagged that during 2020-21, local contributions worth Rs 54,600 from individuals were deposited into the FCRA account instead of the local account, a violation admitted by the association as an “inadvertent” mistake.
The NGO also received Rs 4.93 lakh from Swedish organisation Framtidsjorden for youth-awareness programmes on migration, climate change, food security and organic farming.
While SECMOL maintained the grant was used for educational purposes, the ministry noted that a portion of the project involved “study on sovereignty of the country,” which cannot be supported by foreign funds under Section 12(4).
“We received Rs.4,93,205 from Framtidsjorden for educational program for youths under the FE project 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. The funds were utilised strictly in line with the organisation's objectives and for the specific purposes for which they were allocated. Hence, all these activities were educational and there was no violation,” the association said in its reply.
The ministry said these instances reflected poor accounting practices and possible breaches of Sections 18 and 19.
“in view of violations as enumerated above u/s 8(1)(a), 17, 18, 19 and conditions of registration under section 12(4)(f)(i) of the Act, the FCRA registration certificate of the association is liable to be cancelled in exercise of power u/s 14 of the Act,” the ministry’s order stated.
The FCRA certificate has been cancelled with immediate effect, the order added.
Besides SECMOL, Wangchuk had also founded Himalayan Institute of Alternatives Ladakh (HIAL) which is facing CBI inquiry related to alleged FCRA violations.
The CBI’s probe into SECMOL began about ten days ago after the ministry filed a complaint. Officials from the agency recently visited the institution in Ladakh.
Earlier in the day, Wangchuk alleged that the government was building a case against him to put him behind bars. The activist, who has been leading the agitation for statehood and constitutional safeguards for Ladakh, also raised the alarm over his safety.
"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," he added.
The development comes amid heightened unrest in Ladakh, where protests demanding statehood and inclusion under the Sixth Schedule of the Constitution turned violent on September 24.
Four people were killed in clashes between demonstrators and security personnel in Leh.
The government has held Wangchuk responsible for the mob violence.
Demonstrators attacked the BJP office and Hill Council premises, set several vehicles ablaze and engaged in arson and vandalism.
Security forces used teargas to disperse the crowds in what was described as Ladakh’s worst violence since 1989.
With inputs from PTI