Crime
FIR Filed Against NGO for Alleged FCRA Violations By CBI
The Central Bureau of Investigation (CBI) has filed a chargesheet against the NGO Environics Trust (ET) and three individuals for alleged violations of the Foreign Contribution (Regulation) Act (FCRA) in financial transactions conducted in 2018.
The chargesheet, submitted to a special court, names ET, Vanitha Sreedhar, Nishant Kumar Alag, and Prasanta Kumar Paikray as accused under sections 120-B, 417, 468, and 471 of the Indian Penal Code, along with provisions of the FCRA.
The CBI alleges that ET submitted two forged invoices, one for Rs 6.50 lakh and another for Rs 4 lakh, purportedly issued by a company named MAA Plasto, as part of its FCRA returns to account for foreign fund utilization. According to the agency, these invoices were fabricated, as MAA Plasto had not issued them. The original invoices are reportedly held by the Income Tax (I-T) Department, which has been directed by the special court to provide them to the investigating officer.
Background of the Investigation
The CBI initiated its probe into Environics Trust in 2023 following a complaint from the Union Home Ministry alleging misuse of foreign contributions. The preliminary inquiry was converted into an FIR on January 16, 2023, after the agency found evidence suggesting irregularities.
The CBI’s chargesheet also claims that ET utilized foreign funds to support protests against the JSW steel plant in Dhinkia, Odisha, in violation of the stated objectives of the trust. The agency further alleged that the NGO’s activities disrupted public order and were inconsistent with the provisions of the FCRA Act, 2010.
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Alleged Links to Activist and Financial Transactions
The investigation uncovered financial transactions between ET and Adivasi activist Deme Oram, who was previously arrested by Odisha’s Rourkela police for rioting and unlawful assembly. The CBI claims that Rs 30,000 was transferred from ET to Oram, suggesting the funds were used for purposes unrelated to the trust’s stated objectives.
Response and Next Steps
The chargesheet marks the culmination of nearly a year-long investigation. While PTI sought a response from Environics Trust regarding the allegations, the NGO did not respond at the time of reporting.
The special court has directed the I-T Department to share the original invoices in question with the CBI, enabling further examination. The case underscores the importance of transparency and compliance with FCRA regulations in the utilization of foreign contributions by organizations operating in India.
