Foreign funds flow restricted to four NGOs

The Reserve Bank of India (RBI) has restricted all funding to four American NGOs operating in India after the government found them allegedly violating laws related to foreign contributions.
The US-based Avaaz, Bank Information Centre, Sierra Club and 350.Org or their representatives have been debarred from receiving funds from abroad after it was found that the foreign contributions were being remitted into personal accounts of a few individuals instead of bank accounts operated under Foreign Contribution (Regulation) Act, a Home Ministry official said.
The action came after Home Ministry asked RBI to take prior permission from its foreigners' division before clearing any aid from abroad to the four NGOs. It follows prolonged monitoring of the activities of the four American NGOs which were allegedly violating the rules governing FCRA.

Accordingly, the central bank has put on hold any direct flow of funds to these NGOs and their representatives from abroad since each transaction has to be cleared on a case-by- case basis, the official said.
The move came six months after international environment group Greenpeace and Climate Works Foundation were subjected to a similar restriction for allegedly opposing several development projects in India. The NGOs have denied the charges.
"No NGO will be allowed to violate Indian regulations and (will be) liable for action if they do so. Action will be initiated against them," the official said.