Action against Sonam Wangchuk: Home Ministry cancels SECMOL’s FCRA license
New Delhi (The Uttam Hindu News) - Amid protests in Ladakh, the Union Home Ministry on Thursday issued an order cancelling the FCRA licence of the Students Educational and Cultural Movement of Ladakh (SECMOL), an organisation linked to Sonam Wangchuk.
The Union Home Ministry order stated that SECMOL (hereinafter referred to as the 'Association') was registered under the Foreign Contribution (Regulation) Act, 2010 (FCRA) by issuing Registration Certificate No. 152710012R for receiving foreign contribution for organising cultural and educational events (hereinafter referred to as 'FC'). A show cause notice (SCN) was sent to the association on August 20 by speed post, followed by an email on September 10, calling for show cause as to why the FCRA registration of the organisation should not be cancelled under Section 14 of the Act.
In response to the show cause notice, the association submitted its response via email on September 19. The association's response was examined, which revealed that the organization violated the FCRA. During the financial year 2021-22, Sonam Wangchuk deposited ₹3.5 lakh into the association's FCRA account, in violation of Section 17 of the Act. The organization responded that the ₹335,000 was deposited into the FCRA account because it was the proceeds from the sale of an old bus purchased on July 14, 2015. The Ministry noted that proceeds from the sale of any property purchased with FCRA funds should only be deposited into an FCRA account, as per guidelines. The association's response is not tenable. Column 2(ii)(a) of FC-4 for the financial year 2021-22 states that foreign aid of ₹335,000 was received from Sonam Wangchuk. Although the association stated in its explanation that this amount was received from the sale of a used bus purchased with FCRA funds, there is no credit entry for this amount in the association's FCRA account. This appears to indicate that this amount was received in cash, in violation of Section 17 of the Act, which the association did not properly account for in its response.
Additionally, the association mentioned receiving foreign aid of ₹335,000 from Sonam Wangchuk in FC-4. However, this transaction was not recorded in the FCRA account, in violation of Section 18 of the Act. During the 2020-21 fiscal year, three individuals deposited ₹54,600 in local funds into the association's FCRA account (₹18,200 each), in violation of Section 17 of the Act. The association responded that the ₹54,600 shown as local funds (₹18,200 each from three different individuals) was received for the food and accommodation of volunteers. However, this amount was mistakenly transferred to our FCRA account instead of the local account. Our website clearly states that Indian volunteers should transfer their contributions to the local account and foreign volunteers to the FCRA account. Despite these instructions, the volunteers mistakenly deposited the funds to the wrong account.
According to the Ministry's comment, as admitted by the association, local funds were deposited into the FCRA account in violation of Section 17 of the Act. According to information available in the Annual Report for the financial year 2021-22, the organization received an amount of ₹493,205 from foreign donors, as detailed below, in violation of Section 12(4)(f)(i) of the Act. The organization responded, "We received ₹493,205 from Fremstidjordan for youth education programs under the FE Project. This money was used to raise awareness among youth on issues such as migration, climate change, global warming, food security and sovereignty, and organic farming through various workshops and trainings. The funds were used in accordance with the organization's objectives and for the stated purposes. Therefore, all these activities were educational activities, and no violations occurred."
According to the Ministry's comment, the organization acknowledged in its response that the donors had donated for studies on national sovereignty and certain other subjects, and that the funds were spent in accordance with the objectives of the foreign donors. Foreign contributions cannot be accepted for studies on national sovereignty. This action of the organization is against the national interest and violates Section 12(4)(f)(i) of the Act. According to its annual return for the financial year 2021-22, the organization refunded ₹19,600 to donors, in violation of the conditions of registration under Section 12(4)(a)(vi) of the Act. The organization acknowledged that the ₹19,600 received as foreign donation from Ms. Megha Sanghvi has been refunded. The Ministry commented that the law does not provide for the return of foreign funds to the donor. The organisation is likely to return the foreign funds to the donor, use it for personal gain or use it for improper purpose in violation of the conditions of registration under Section 8(1)(a) of the Act.
According to SECMOL's annual return for the 2020-21 fiscal year, it received foreign contributions of ₹79,200, but these contributions were not deposited into its FCRA bank account. It is suspected that this money was deposited into local bank accounts in violation of Section 17 of the Act. The institution responded that the ₹79,200 amount was deducted directly from staff salaries and fellows' allowances, so there was no separate transaction. Since this amount was deducted at source as meal charges, it was recorded as meal charges in the books of accounts and used for meal expenses. The Ministry stated that the organization has clarified that the amount of ₹79,200 was deducted directly from the employees' salaries, meaning that the amount was never disbursed to the employees and, therefore, showing it as 'Other receipts from projects/activities' in column 2(i)(b)(ii) of FC-4 for the financial year 2020-21 is incorrect. This indicates that the organization's accounting practices are not proper. Showing this amount as 'receipt' in FC-4 is a violation of sections 18 and 19 of the Act.
Following this, the Union Home Ministry immediately cancelled SECMOL's FCRA registration certificate, number 152710012R. Meanwhile, the Leh District Magistrate wrote to SECMOL Director Sonam Wangchuk, leveling serious allegations against his NGO. The letter stated, "You (Sonam Wangchuk) are bypassing administrative offices like the Zonal Education Office and demoralizing government employees, using indecent language and comments, and making baseless allegations against the department and its employees. You are illegally occupying 200 kanals of land without paying the government dues. You are abusing the provisions of the Foreign Contribution Act and misappropriating funds received from foreign contributions."
The letter further states that you have connections in China and elsewhere that could be or have been used for anti-national activities. You (Sonam Wangchuk) have been periodically threatening the council and district administration with negative comments and threats of dire consequences, thereby disturbing the peace in the area. All these allegations are very serious and pose a grave threat to the administration and peace of the area. You are hereby notified that action will be taken against your NGO and you personally in all these matters to prevent any further disturbance in the area.