In a controversial move, the Ministry of Home Affairs (MHA) has canceled the Foreign Contribution Regulation Act (FCRA) registration of the Centre for Policy Research (CPR). The policy think tank confirmed receiving the order on January 10, 11 months after the initial suspension of its FCRA license on grounds of violation.

The decision followed an Income Tax survey on CPR premises in 2022, where MHA officials claimed to have discovered crucial documentary evidence suggesting the misuse of foreign funds. The ministry accused CPR of diverting foreign funds to other entities, a violation of FCRA rules.

CPR, which had challenged the Income Tax department’s decision to withdraw its tax exemption, now finds itself grappling with the aftermath of the government’s actions. In response, the organization stated that the MHA’s decision lacked inquiry and described it as “incomprehensible” and “disproportionate.”

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The think tank expressed concerns over the impact on its operations, stating that the government’s decisions on FCRA and Income Tax had significantly hampered its functioning. CPR argued in the high court that the MHA’s decision challenges the very basis of a research institution’s functioning.

CPR, in a statement, vowed to seek recourse through all available legal avenues, emphasizing its complete compliance with the law and cooperation throughout the process. Meanwhile, senior Congress leader Shashi Tharoor criticized the decision on social media, calling it a “shame” and warning that such actions could discredit India internationally.

The FCRA, enacted in 2010, regulates and prohibits the acceptance and utilization of foreign contributions or hospitality by certain individuals, associations, or companies. The government amended the FCRA in 2020, citing a doubling of foreign contributions between 2010 and 2019 and concerns that some recipients were not utilizing funds for their intended purposes.