Foreign entities fund Indian NGOs to halt public projects: I-T dept to SC
- In Reports
- 12:29 PM, Apr 16, 2024
- Myind Staff
The Income Tax (I-T) Department informed the Supreme Court (SC) that foreign entities have been making a deliberate attempt to fund Indian NGOs and trusts with the intention of obstructing public projects and undermining India's economic interests. This statement, reported by The Indian Express (IE), came as the I-T department opposed a plea filed by NGO Environics Trust, which contested the notice issued by the department for reassessment of tax returns.
According to reports, the Income Tax (I-T) department stated in an affidavit that it initiated a survey against the NGO on September 7, 2022. Upon analysing the material and independently evaluating the evidence, the department concluded that the NGO's activities were neither genuine nor aligned with the objectives of the Trust.
The affidavit revealed that the petitioner trust receives funding from foreign entities and is utilised to obstruct public projects deemed beneficial for India. It also noted that the petitioner Trust engages paid protesters to demonstrate against India's public initiatives. Additionally, more than 90 percent of the trust's income is derived from foreign donations.
The affidavit also mentioned that the trust's activities seem to constitute a systematic attempt by foreign entities to impede development projects in India. Although this aspect was not taken into account when issuing the notice under Section 148 of the Income Tax Act, it would be considered a relevant factor in supporting the High Court's decision that this is not an appropriate case for the exercise of jurisdiction under Article 226, as reported by The Indian Express.
A Bench, chaired by Justices Sanjiv Khanna and Dipankar Datta, presided over the hearing of an appeal filed by the NGO, challenging the November 8 order issued last year by the Delhi High Court. The Trust had lodged a petition with the Delhi High Court, disputing the notice issued to it under Section 148 of the Income Tax Act, 1961. This provision empowers the department to reassess tax returns in cases where it suspects income has evaded assessment.
The Income Tax Department disclosed that the trust received Rs 14.27 crore between 2016 and 2021, with Rs 13.66 crore attributed to foreign contributions. Established in March 2003, the trust aimed to conduct research and development on environmental issues and human behaviour, implement community development programmes, and provide support to communities in addressing injustices and protecting their rights.
However, the affidavit revealed that the survey uncovered instances where the trust funded protests against development projects in an Odisha village, disguising them as relief package distributions to households. It was found that the Environics Trust transferred Rs 1,250 per individual from its ICICI bank account to those involved in the protests and named in the FIR. Consequently, the trust was accused of misusing foreign contributions to obstruct development projects rather than utilising them for their intended purpose.
The affidavit also revealed that the trust was found to be collaborating with the Mineral Inheritors Right Association (MIRA) to protest against steel and coal projects in Odisha, activities that do not align with the trust's objectives. Additionally, the involvement of the Environics Trust with the European Climate Foundation (ECF) in protesting against thermal power projects in India was deemed inconsistent with the trust's stated objectives.
Image source: Indian Express
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