New Delhi, June 16: The home ministry has cancelled the licence of Teesta Setalvad's NGO, Sabrang Trust. With this order the NGO will not be entitled to receive foreign donations. The decision was taken under the provisions of the Foreign Contribution (Regulation) Act (FCRA).
The Home Ministry had on September 9 suspended the licence of the trust. Further the ministry had sought for a reply on the same.
The ministry however found the reply inadequate. It was found that the NGO had committed a violation under Section 8(1) of the FCRA.
The allegation against the trust was that it had transferred Rs 50 lakh to an entity called Sabrang Communication & Publishing Private Ltd in which Teesta and her husband Javed Anand as directors. It was said that this was used for personal gain.Further utilising foreign funds in media is also barred.
The process to cancel the licence had commenced in the month of March itself. The response given by Teesta was not convincing. While questioning the decision to suspend the licence, the trust said that it was not in a position to explain all the donations made to it.
The Home Ministry had said that in 2010-11 and 2011-12, Sabrang had spent between 55% and 65% of foreign funds it received for administrative expenses.
As per the FCRA rules if an NGO's administrative expenses exceed 50% of total foreign donations it would need the approval of the Home Ministry.