I-T Dept surveys think tank CPR, NGOs and unrecognised political parties

The income tax department on Wednesday conducted surveys on New Delhi based think tank Centre for Policy Research (CPR), international charity organisation Oxfam, Bengaluru-based Independent and Public Spirited Media Foundation (IPSMF) and registered unrecognised political parties (RUPPs) and several other non-government organisations (NGOs), official sources said under condition of anonymity.

The taxman undertook the surprise action against three more organisations in the non-governmental organisation (NGO) and charitable organisation domain, they said.

The department visited the premises of these organisations around noon and inspected the book of accounts and financial transactions as part of the probe related to alleged contravention of the Foreign Contribution Regulation Act (FCRA), sources said.

The office staff and main directors and office bearers were questioned too, they said.

Sources said the department is looking at the balance sheets of these organisations vis-a-vis the receipt of funds via the FCRA.

According to law, all NGOs receiving foreign funds have to be registered under the FCRA. The government has cancelled FCRA registration of nearly 1,900 NGOs for violating various provisions of law in the last five years. There were 22,762 FCRA-registered organisations till December-end 2021.

The Centre amended the FCRA in 2020 allowing conducting an enquiry before a renewal and giving organisations the option of surrendering the licence if an organisation doesn’t want it. 
 

Officials of CPR, Oxfam and IPSMF couldn’t be immediately reached for a response. The CBDT spokesperson refused to give further details “as searches/surveys are continuing”.

The surveys on RUPPs and their linked entities spread across multiple states as part of their alleged dubious funding came after the Election Commission of India earlier this year struck off 87 entities from its list of RUPP after they were found non-existent during physical verification.

The poll panel had announced that it was taking action against more than 2,100 registered unrecognised political parties for flouting rules and election laws, including those related to filing of monetary contributions, failing to update their address and names of office bearers.

The searches were conducted in Gujarat, Delhi, Uttar Pradesh, Maharashtra, Haryana and some other states, officials said.

“The Commission has evidence of serious financial impropriety, willful attempts for tax evasion and other illegal financial activities against three specific Registered Unrecognized Political Parties (RUPPs) amounting to fraudulent use of privileges and public trust available to them,” the ECI said on 25 May this year.

The ECI said income tax exemptions have been taken to the tune of Rs 445 crores in 2018-19 by 199 RUPPs and Rs 608 crores in 2019-20 by 219 RUPPs. “Of these, 66 RUPPS have claimed income tax exemption without submitting contribution reports in Form 24A as mandated under section 29C of the Act,” it added, recommending action against the RUPPs at fault.