In a rare developments, the Union Home Ministry has ordered a forensic audit of three years of accounts of the NGO Give India, whose registered office is in Ahmedabad.
Sources familiar with the case said that the Chartered Accountant Firm Borkar and Majumdar has been appointed for this audit and the CA firm will investigate how much foreign donations this NGO received and used during the financial year 2019-20, 2020-21 and 2021-22.
According to sources, this order of investigation has been given under sections 20 and 23 of the Foreign Contribution (Regulation) Act (FCRA). However, the information of why this inquiry has been ordered is not yet available. According to experts, if a person or organization fails to provide information on time or the information provided is not in accordance with the law or the government feels that the provisions of the law have been violated, Section 20 of the FCRA is implemented. According to the information available on the website of this NGO registered in the name of Give Foundation, this organization works towards eradication of poverty by implementing effective social initiatives and helps individuals and organizations to donate for a specific purpose.
Meanwhile, after the order given by the Union Home Ministry, the concerned CA Company, while starting the investigation, has sought complete details of those who contacted the bills and foundations given to various sellers of the Give Foundation, the contracts made for these supplies, the work order, bills and foundations given to the foundation. However, many vendors were not ready to give such information, as these vendors consulted the experts after the CA company asked for such details. According to the advice given by the experts, if any investigation is conducted by the Income Tax Department, its officers have the right to investigate on the concerned parties, against which it is being investigated, so that it can be verified whether the information is correct or incorrect, but the investigation under FCRA is limited to the unit that is being investigated.
Expressing their opinion on the appointment of CA company for forensic audit by the Union Home Ministry, experts say that if there is a suspicion of misuse of donations from abroad or the rules of providing information according to the provisions of FCRA, the rules of providing information have not been followed, then the Union Home Ministry can order an inquiry, but it is rarely seen that both these steps are taken and the appointment of the Forensic Audes is done for the Forensic Audes. Go This indicates that the Ministry of Home Affairs wants to conduct a detailed investigation by experts how donations received from abroad were used by the respective NGOs.
Experts say that it is possible that the order of this inquiry may have been issued by the Ministry of Home Affairs and issued on the basis of complaint received by the NGO about the misuse of donation. He said that this order of the Ministry of Home Affairs indicates serious violations of the provisions of the law or the amount of donation has been used for a purpose that creates anxiety. If this is not, it is the reason to believe that a major change has been made in the approach adopted by the Ministry of Home Affairs to investigate cases of violation of FCRA’s provisions. Significantly, in recent years, the government is constantly monitoring donations and its use coming from abroad. To monitor the money flow coming to the account of the NGO, the NGOs receiving donations from abroad are required to open an account at the State Bank of India branch in New Delhi. Once an NGO is put in the pre -reference category, ie the monitoring list, the donation received in this account is released only after the Home Ministry was approved by the Ministry of Home Affairs.
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