Greenpeace licence suspended, foreign funding barred

New Delhi: The Indian government on Thursday announced it has "temporarily" suspended the registration of Greenpeace India under the foreign contributions law for "under-reporting" such funding it and conducting transaction of such funds without informing the authorities as required by the law.

Along with the 180-day suspension, the ministry of home affairs froze all seven bank accounts of the organisation and served it a show-cause notice seeking explanation why its license should not be cancelled.

Greenpeace India, however, has received "no official communication" from the ministry, the NGO said in a statement.

"This is a smear, pure and simple. All of this was put before the Delhi High Court when we brought a case against the centre, and the court decided in our favour," said Greenpeace India executive director Samit Aich.

Posted on the ministry's website, the order found the association in violation of rules under the Foreign Contribution Regulation Act for transferring "foreign contribution received in the FCRA designated account to FCRA utilisation account and from there to... five other bank accounts without informing authority concerned".

It further said: "The association has under-reported and repeatedly mentioned incorrect amount of foreign contribution received in violation... of FCRA, 2010."

Divya Raghunandan, Greenpeace India programme director, dismissed the charges as based on "bunch of minute technicalities".

"We are confident that we will be able to rebut and respond to these charges that are based on minor technicalities, as told to us by our lawyers and chartered accountant," Raghunandan said.

Greenpeace India also claimed that they were being targeted for expressing dissent and protesting against "crony capitalism" that supported a coal mine project in Mahan forest of Madhya Pradesh's Singrauli district.

Aich added that they "will continue to work towards clean air, clean water and inclusive development in India".

Security agencies, in their reports to the home ministry earlier, had recommended cancellation of Greenpeace India's FCRA registration, terming it a threat to national economic security.

Reacting to the move, Greenpeace India said it will not be "cowed" down by a "campaign against dissent" and is seeking legal counsel in the matter.

It termed the government action as a "smear" campaign and vowed to continue work towards clean air, water and inclusive development in India.

Samit Aich, Executive Director of Greenpeace India, said that the MHA's repeated moves to restrict the NGO's funding and the movement of its personnel were clear attempts to "silence criticism and dissent".

In a dossier on Greenpeace India, prepared after more than six month long investigation on the activities of the NGO, the Home Ministry said foreign contribution was used "to influence and lobby for the formation of government policies". In its notice to the Greenpeace, the Home Ministry said it has been found that multiple transfers were made to multiple accounts including inter-account transfers from utilisation account without any intimation or permission of the government.

"..The association has under reported and repeatedly mentioned incorrect amount of foreign contribution received in violation of the FCRA. The most glaring example being foreign contribution opening balance for 2008-09, which was reported as NIL in auditor's certificate but was actually Rs 6.6 cr. The Greenpeace India subsequently admitted the same and claimed it to be a typographical error, which is not tenable," it said.

The Home Ministry dossier said in contravention of the FCRA rules, Greenpeace was also in talks with the Aam Aadmi Party(AAP) and declared the NGO's consultant Pankaj Singh as the AAP candidate from Mahaan for Sidhi Lok Sabha constituency in Madhya Pradesh.

Singh subsequently resigned from Greenpeace and joined AAP to contest the elections. However, latest information indicates that he is again active in Greenpeace activity in Madhya Pradesh, the Home Ministry report said.