New Delhi, May 3 (PTI) US-based Ford Foundation has funded a political party and profit making organisations "illegally" which has resulted in the foreign outfit coming under the Home Ministry scanner and put on the "watch list".
A senior Home Ministry official said an investigation has found that funds sanctioned by the Ford Foundation to an NGO have reached a political party which automatically makes the donor liable to face action.
But the Ford Foundation has rejected the charge. The probe has also found that Ford Foundation has funded several organisations which do not fall in the category of NGOs, which are eligible for receiving foreign funds, as they make profits, the official said.
The international donor strongly refuted the charge of funding political parties but accepted that it worked with various entities including those which work for profits.
"We wish to affirm that the foundation does not fund political parties. The foundation does, however, work with a range of other entities, including non-governmental organisations, government and quasi-government entities, universities, and for-profit entities, depending on the needs of the particular work involved.
"This includes engaging for-profit entities to provide services to the foundation and its grantee communities," Ford Foundation spokesperson Joshua Cinelli told PTI in a statement.
Under the Foreign Contribution Regulation Act, no donor can fund political parties or any organisation which makes profits.
Following the investigation, the Home Ministry has put the Ford Foundation on its "watch list" and ordered that all funds coming from the US-based donor have to be routed only with its nod due to "national security concerns".