Centre cancels Rajiv Gandhi Foundation, Charitable Trust's foreign funding license
The Ministry of Home Affairs (MHA) canceled the Foreign Contribution Regulation Act (FCRA) license of the Rajiv Gandhi Foundation (RGF) and the Rajiv Gandhi Charitable Trust (RGCT) on Saturday for allegedly violating the foreign funding law. RGF and RGCT are organizations associated with the Gandhi family, and the cancelation orders were issued following a report by a committee formed by the MHA in 2020.
Why does this story matter?
- The RGF's funding came under political scrutiny in 2020 after Bharatiya Janata Party (BJP) President JP Nadda claimed the organization had taken huge donations from China in 2005-06.
- Later, the Centre launched an investigation into the matter, which came amid border disputes with China, for which the BJP and the Congress both accused each other of failing to do their jobs.
MHA sends cancellation notice to RGF, RGCT officer bearers
According to India Today, a notice informing about the cancellation of the FCRA license has been sent to the office bearers of RGF and RGCT, too. Notably, former Congress chief Sonia Gandhi is the chairperson of RGF, while other trustees include former Prime Minister Manmohan Singh, former Finance Minister P Chidambaram, and Members of Parliament Rahul Gandhi and Priyanka Gandhi Vadra.
BJP's 'China funding' allegations
Nadda alleged in 2020 that RGF used $300,000, which was given to it by the People's Republic of China and the Chinese embassy in 2005-06, to conduct studies that were not in the country's best interests. The accusations came as Rahul Gandhi questioned Prime Minister Narendra Modi's leadership in light of the tensions near the Line of Actual Control in Ladakh at the time.
MHA probes fraud in organizations run by Gandhis
Following the BJP's allegations in 2020, the MHA formed an inter-ministerial committee to probe the funding of RGF and RGCT under the Prevention of Money Laundering Act (PMLA), Foreign Contribution Regulation Act (FCRA), and the Income Tax Act. It was headed by a special director from the Enforcement Directorate (ED) with members from CIT, the Income Tax Department; the Finance Ministry; and the MHA.
RGF lists China as partner organization, donor
Meanwhile, in RGF's annual report for 2005-06, the Chinese embassy was reportedly listed as one of the "partner organizations and donors." China was also listed among the sponsors of the Rajiv Gandhi Institute of Contemporary Studies (RGICS), a policy think tank of RGF. Notably, RGF, founded in 1991, focuses on issues relating to health, science and technology, women and children, and disability, among others.
