HM orders CBI probe into funding to firm linked to Teesta

New Delhi, June 26

The central government has ordered the CBI to probe allegations that a Mumbai-based private firm Sabrang Communication and Publishing Pvt Limited (SCPPL), believed to be linked to social activist Teesta Seetalvad, received Rs 3 crore from foreign donors, including US-based Ford Foundation, in violation of Foreign Contributions Regulation Act (FCRA) rules.

The central government also froze the firm’s bank accounts after the Home Ministry claimed that the firm was not registered under FCRA and could therefore not receive funding from abroad.

The firm, which has its office in Mumbai’s Juhu, is believed to have received a donation of USD 2,90,000 and Rs 1.30 crore with getting the Home Ministry’s clearance, the ministry said in a letter to CBI.

The law states down that a private firm can accept donations from overseas only if it is registered under FCRA.

The Ministry has also directed IDBI Bank to freeze firm’s account and not allow any transactions without its permission, it said.

The Home Ministry claims it noticed the firms flagrant flouting of rules by Home Ministry officials while they were going through the firm’s accounts for 2006-07 to 2014–15 at its office.

The activist was unavailable for comments. However, she had previously claimed the ministry's inspection team.

The Ministry also accused the firm of mixing its foreign contribution with their domestic donation in violation of the Act. It also did not maintain exclusive bank account for receipt of foreign fund, the letter said.

The inspection findings cited an agreement between the firm and Ford Foundation restricting the use of funds to charitable, scientific literacy or educational purposes but the firm could not be treated as grant provided for the purpose of rendering any service, it said.

Friday’s order comes a few days after Gujarat government asked the Home Ministry to act against Ford Foundation, which it claimed was "interfering in internal affairs" of the country and also "abetting communal disharmony" through an NGO run by Setalvad.

The fund transfer from Ford Foundation has to be cleared by a nodal official in the Home Ministry.

In April, the government had ordered that donations from Ford Foundation should not be released without mandatory permission from the Home Ministry.

Gujarat government and Setalvad have had a long history of confrontation. Seetalvad has claimed that several functionaries of the state government functionaries, including then chief minister Narendra Modi, were involved in the post-Godhra riots of 2002.

Gujarat police have filed a case of alleged embezzlement of funds against the social activist. — PTI