MHA cancels FCRA licenses of two NGO headed by Sonia Gandhi

According to officials, the investigation uncovered alleged misuse of funds and money laundering while receiving funds from foreign countries, including China, and manipulation of documents while filing income-tax returns.

In what can trigger another confrontation between the ruling Bharatiya Janata Party and the Opposition Congress, the Foreign Contribution Regulation Act (FCRA) licences of the Rajiv Gandhi Foundation (RGF) and the Rajiv Gandhi Charitable Trust (RGCT) -- two NGOs headed by Congress leader Sonia Gandhi -- have been cancelled by the Union Home Ministry for alleged violation of laws.

According to reports, the action against Rajiv Gandhi Foundation came after alleged foreign funding law violations were unearthed during an investigation carried out inter-ministerial committee formed by the Union Home Ministry. According to officials, the investigation uncovered alleged misuse of funds and money laundering while receiving funds from foreign countries, including China, and manipulation of documents while filing income-tax returns.

Former Prime Minister Manmohan Singh and members of the Gandhi Family -- Rahul Gandhi and Priyanka Gandhi Vadra -- are trustees in the Rajiv Gandhi Foundation, which was set up in 1991 with a focus on issues like education, health, women and children, disability support, science and technology, etc. RGF's other trustees include former finance minister P Chidambaram, Congress Montek Singh Ahluwalia, Ashok Ganguly and Suman Dubey. The trustees of the RGCT are Rahul Gandhi, Bansi Mehta, Deep Joshi and Ashok Ganguly.

The RGCT was set up in 2002 to address the development needs of India's underprivileged people, especially in rural areas. Both the RGCT and RGF operate from the same building -- Jawahar Bhawan at Rajendra Prasad Road, near the Parliament complex, in New Delhi.

The MHA set up the inter-ministerial committee in July 2020 to look for possible violations of FCRA, income tax, and the money laundering act by three Gandhi family-run foundations -- the Indira Gandhi Charitable Trust, the Rajiv Gandhi Foundation and the Rajiv Gandhi Charitable Trust. Led by an Enforcement Directorate officer, the team was also comprised of officers from the Home and Finance ministries and from the Central Bureau of Investigation. 

The probe came after BJP chief JP Nadda leveled serious allegations against the Rajiv Gandhi foundation. Citing the non-profit organization's financial records, the BJP had claimed that the NGO had received a Rs 90 lakh donation from the Chinese Embassy in India in 2006-07. RGF's 2005-06 annual report, which is available on its website, mentioned the Chinese embassy as one of its donors under 'partner organisations and donors'.

The BJP also alleged, citing documents, that the Rajiv Gandhi Foundation received money from the Prime Minister's National Relief Fund. Senior Congress leader P Chidambaram admitted that funds were diverted to the NGO in 2005 and clarified that the funds were used to undertake tsunami relief work in Andaman and Nicobar.