NGO accused of violating multiple provisions under FCRA

The Ministry of Home Affairs (MHA) has cancelled the Foreign Contribution (Regulation) Act (FCRA) certificate of the Students’ Educational and Cultural Movement of Ladakh (SECMOL), an organisation led by activist Sonam Wangchuk. The cancellation comes in the wake of a Central Bureau of Investigation (CBI) inquiry into alleged financial irregularities.

Violations cited by the government

According to the MHA, SECMOL violated several provisions of the FCRA, including Sections 8, 12, 17, 18, and 19.

  • In FY 2021–22, Wangchuk allegedly deposited ₹3.35 lakh into the FCRA account from the sale of an old bus, which the ministry said was against norms.
  • In FY 2020–21, local contributions worth ₹54,600 were deposited into the FCRA account instead of the domestic account.
  • The organisation also received ₹4.93 lakh from Swedish group Framtidsjorden for youth awareness programmes. Authorities said the funds included activities such as a “study on sovereignty of the country,” which cannot be supported under FCRA.
  • Further discrepancies included ₹19,600 in foreign donations returned during the Covid lockdown and ₹79,200 deducted from staff stipends but recorded as food-fee receipts.

The MHA described the association’s explanations as “untenable” and cited poor accounting practices.

Certificate cancelled with immediate effect

In its official statement, the ministry said:
“Considering the facts and violations… the Competent Authority, hereby, in exercise of the powers conferred under section 14(1) of the Act, cancels with immediate effect the FCRA Certificate of Registration granted to SECMOL.”

The CBI began its probe around 10 days ago after a complaint from the MHA. Officials recently visited the institution in Ladakh as part of the investigation.

Wangchuk denies wrongdoing

Reacting to the cancellation, Sonam Wangchuk alleged that the government was engaging in “witch-hunting.” He said SECMOL never sought foreign funding and that fees received from international organisations for knowledge-sharing projects were being wrongly portrayed as violations.

“To say it was instigated by me or by Congress is to find a scapegoat, rather than addressing the core of the problem… At this time, we need wisdom rather than cleverness because youths are already frustrated,” he told PTI.

Wangchuk also expressed fears of being arrested under the Public Safety Act (PSA), but asserted, “Sonam Wangchuk in jail may cause them more problems than free Sonam Wangchuk.”

Link to Ladakh unrest

The controversy comes at a time of heightened tensions in Ladakh. On September 24, protests demanding statehood and inclusion under the Sixth Schedule turned violent. Crowds set fire to the BJP office, government vehicles, and sections of the Hill Council. Police were forced to use teargas to disperse the agitators, marking the worst violence in the region since 1989.

The MHA has accused Wangchuk of provoking unrest, though he has denied the charge and reiterated that his agitation has been peaceful.

Conclusion

The cancellation of SECMOL’s FCRA licence adds to the escalating standoff between the government and civil society groups in Ladakh. As investigations continue, the move has sparked concerns among locals that it could weaken youth-focused educational initiatives, even as political tensions in the region remain high.