FCRA licence of Indira Jaising's NGO suspended for 6 months

Noted lawyer Indira Jaising's NGO 'Lawyers' Collective' was today barred from receiving funds from abroad as its licence was suspended for six months for alleged violation of Foreign Contribution Regulation Act (FCRA).
The Home Ministry, while suspending the licence, asked the NGO to submit its reply within 30 days for violation of various provisions of FCRA after which its registration may even be cancelled.
The Ministry while rejecting the reply of the NGO said
that the records made available by it were examined in detail and "it was found that the same were not satisfactory" and it did not provide adequate explanation vis-a-vis the violations found and pointed out".

The notice sent to the NGO said that during the course of adjudication whereby defence, explanations, documents were submitted by the NGO, "we have arrived at a prima facie conclusion" that the Association was in violation of various provisions of FCRA.
Indira Jaising while functioning as ASG from July 2009 to May 5, 2014 received renumeration of Rs 96.60 lakh, which is admitted by the Association in its reply dated March 30, 2016 by stating that the remuneration of Rs 81.41 lakh was paid by the NGO, persuant to the permission of the Central government for 59 months (July 2009-May 2014).

The Home Ministry said it is really surprising how a senior law officer, such as an ASG can simultaneously and for such a long period be on the rolls of a private entity, being paid (out of foreign contribution) for undisclosed purposes in gross violation of rules applicable to law officers of Union of India.

Besides, how did the Association agree to such an arrangement (without even any resolution to that effect) and why she herself should have agreed for such an arrangement (without obtaining appropriate clearances required under the provisions of FCRA, 2010 and other relevent authorities).
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On inspection of the NGO's accounts, the Home Ministry said, it was noticed Rs 13.03 lakh out of foreign contribution "have been spent on travel, boarding, lodging etc., used for advocacy including advocacy with MPs or media, to organise rallies or dharnas, draft legislation meetings" even though as per the foreign contribution return filed, there was no such mention.
However, in its reply, the NGO has argued that the dharna etc., took place in 2009 when the FCRA, 2010 was not in force.
"It may be mentioned here that the Association organised such rallies or dharnas not only in 2009 but also in 2011 and 2014. Moreover, organising such rallies or dharnas with political hue and colour by utilising foreign contribution was also not allowed under FCRA 1976, which was in force in 2009.

"The utilisation of foreign contribution for advocacy indulging in lobbying with MPs and thereby influencing the political process and Parliamentary institutions in in clear violation of letter nd spirit of the Act as enshrined in the introduction to FCRA 2010," the Home Ministry said.
The Home Ministry in its notice said Anand Grover, who is a trustee of the NGO, had appeared in Novartis case in the Supreme Court by spending foreign contribution which was clearly not meant for that purpose.
Grover, the Home Ministry said, was appointed as United Nations Special Rapporteur (UNSR) on Right to Health vide Human Rights Council on June 27, 2008. During the period 2008- 2014, one of the foreign donors donated USD 95,000, USD 97,000, USD 93,896 and USD 89,599 to the NGO, specifically to assist him in his work as UN Special Rapporteur.

In the minutes of the trustees meeting (November 3, 2007 and February 23, 2008), regarding appointment as UN Special Rapporteur for health, Grover stated that he was not getting any salary for this job and only received travelling expenses per day.
Consequently, he availed a foreign contribution for various purposes, including visit to foreign countries. This was not an activity listed in the objectives of the Association and therefore the Association violated certain FCRA provisions "by working as a conduit to receive foreign contribution on behalf of Anand Grover and transferring same to him," the notice said.
A total of Rs 22.53 lakh was spent from foreign contribution received by NGO against various national and international air travels of Grover and on telephone calls and internet charges, for purchasing foreign currency to pay him and other foreigners in violation of provisions of FCRA 2010, relating to transfer and utilisation of foreign contribution.

Further foreign contribution was spent for air travel and other expenses of contractual employees or workers of other organisations, foreigners to attend conferences in Kathmandu, Malaysia, Kenya, Vienna and Bangkok besides others places in violation of FCRA norms, the Home Ministry notice said.
As per the notice, the NGO has a designated bank account with Standard and Chartered Bank in Mumbai, but it had maintained accounts in HSBC Bank branches in Mumbai and Bangalore which were not reported to the government.