Centre asks CBI to probe Oxfam over FCRA violations

The Ministry of Home Affairs has asked the Central Bureau of Investigation (CBI) to probe global non-profit organisation Oxfam over alleged violations of the FCRA (Foreign Contribution Regulation Act). In September last year, the Income Tax Department conducted a 'survey' at Oxfam's Delhi office over alleged financial irregularities. The department also conducted a survey at the Delhi-based think tank CPR (Centre for Policy Research). 

Oxfam India was registered under the Foreign Contribution (Regulation) Act 2010 (FCRA, 2010) for undertaking 'Social' activities. Its registration certificate was valid up to 31 December 2021. 

Sources today listed the reasons why a CBI probe was recommended by the MHA. They said Oxfam India continued to transfer Foreign Contributions to various entities even after coming into force of the Foreign Contribution (Regulation) Amendment Act, 2020 which prohibits such transfers. The amendment came into force on September 29, 2020. Oxfam India, they said, transferred funds to other NGOs, violating provisions of the FCRA.

From emails found during the IT survey by the CBDT, it was revealed that Oxfam India was planning to circumvent the provision of the FCRA by routing funds to other FCRA-registered associations or through the for-profit consultancy route, sources said.

According to them, the IT survey by the CBDT also exposed Oxfam as a probable instrument of the foreign policy of foreign organisations/entities which have funded Oxfam India liberally over the years. 

Oxfam India, which is registered to carry out social activities, routed funds to the Centre for Policy Research (CPR) through its associates/employees in the form of a commission. The same is also reflected from the TDS data of Oxfam India which shows a payment of Rs 12,71,188 to the CPR in the F.Y. 2019-20 under section 194J. 

Oxfam India received a foreign contribution amounting to Rs 1.50 crore (approx) directly into its FC utilization account instead of receiving a foreign contribution in the designated FCRA account.

In September last year, Oxfam India said the tax officials conducted a 'survey' at its Delhi office from the 7th of September 2022 noon to the early hours of the 9th of September. During these 35-plus hours of non-stop survey, it said, the Oxfam India team members were not allowed to leave the premises, the internet was shut down and all the mobile phones were confiscated.

"They also took all the data by cloning the Oxfam India server and the private mobile phones of the Senior leadership team and the finance lead. While the team conducting the survey was polite and professional; the process of a survey with such sweeping powers and broad ambit resulted in disappointing Oxfam India, an organisation that has been law-abiding and community-centric," the statement read.

"Oxfam India is compliant with Indian laws and has filed all its statutory compliances, including Income tax and Foreign Contribution Regulation Act (FCRA) returns, in a timely manner since its inception," Oxfam stated.