Authorized chartered accounting firm Borkar & Muzumdar has authorized to inspect receipts and records for receipts and records and utilize foreign donations from 2019-20, 2020-21 and 2021-22, the person who knows the decision told ET.
It is not clear what triggered the audit of Articles 20 and 23 and the Foreign Contributions (Regulations) Act. Article 20 of the Act may be called if the person in question fails to share information in a timely manner, or if the information provided does not comply with the law, or the government believes that the law violates the law.
According to Giveindia’s website (registered as Give Foundation), the organization “existed in reducing poverty by providing influential social initiatives” and “enables individuals and institutions to donate funds for the cause of choice…”
The Foundation Director Atul Satija did not respond to the email sent by ET on Wednesday. Emails sent to MHA spokespersons and WhatsApp were not answered until they were pushed away.
Borkar & Muzumdar has asked for information from various vendors of the Foundation to share, such as total fees, agreements, work orders, persons who introduced them to the Foundation, and copies of invoices. Sources said some suppliers are reluctant to share information because they believe that unlike the Income Act law, which allows tax officials to contact multiple parties to verify information, so investigations under the FCRA should be limited to organizations under review.
“This is certainly unusual. Under the FCRA, the MHA may initiate an inquiry when a violation is suspected, such as the abuse of foreign contributions or failure to comply with the FCRA regulations. However, please investigate Section 20 (Appointment Information) (Sought Information) and Section 23 (Section of Accounts) (Conducting Accounts) (Checking of Accounts) and authorize professional practices of CA and authorize detailed practices and detailed practices. Isha Sekhri, partner of Isha Sekhri, Advisory LLP, dealing with FCRA and FEMA affairs.
“Suo Motu can be initiated by MHA, but it is also initiated based on complaints received from third parties. The move could point to violations of the bill, or a shift in the MHA’s handling of certain high-profile or sensitive FCRA cases, or has attracted attention, or brought a deal,” Secre said.
The government has been lying through the end use of foreign donors and NGOs. All NGOs accept foreign donations at specific New Delhi branches of the National Bank of India while tracking inflows and curbing transfers. Once foreign donors are included in the “Previous Reference Categories” list (or monitoring list), the bank obtains an MHA license before deducting the amount.
FCRA has been tightened over the years with the last round of restrictions introduced in 2020. A controversial amendment in September 2020 stopped larger NGOs, distributing foreign donations to smaller nonprofits covering the last mile. NGO officials said the regulation hurts smaller NGOs in remote areas. The law has changed in allegations that some people abuse foreign donations. The regulation originated in the era of emergency. Its purpose is to deal with foreign plans that attempt to undermine political and parliamentary institutions.
