MHA likely to order CBI probe against Teesta Setalvad's company

Union home ministry may initiate a CBI probe against Teesta Setalvad-owned company Sabrang Communications and Publishing Private Limited (SCPPL) for receiving foreign funds from Ford foundation.

Being a private limited company not having FCRA registration, the SCPPL was not entitled to receive foreign funds and action under section 43 of the FCR Act can be initiated against it, Union home ministry sources said.

According to section 43 of the FCRA, notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence punishable under this Act may also be investigated into by such authority as the Central Government may specify in this behalf.

A notification issued in 2011 extends powers of section 43 by allowing investigation by the CBI with regard to offences that involve a prima-facie violation of the provisions of the FCR Act, 2010 involving receipt of foreign contribution of an amount of one crore rupees or equivalent or above and in any other case which may be specifically entrusted to the CBI by the Central government under the said Act.

The sources claimed the home ministry during its inspection of the company's accounts found that an amount of Rs 50 lakh was allegedly transferred to it by Setalvad's NGO Sabrang Trust which also was in violation of FCRA norms.

However, the Union home ministry, does not find Ford Foundation culpable for giving funds to the SCPPL and is ready to remove its name from the prior permission category list once the Foundation fulfills the FCRA criteria.

The Ford Foundation, according to home ministry sources, was allowed to set up its office on the request of India's first Prime Minister Jawaharlal Nehru and was especially giving permission by the department of economic affairs (DEA) to grant funds in various fields.

"Its (Ford Foundation) existence precedes FCRA and it was functioning as per the rules of DEA. However, as the FCRA registration is mandatory for NGOs and foreign donor, it should also adhere to the FCRA. Once it does, in all likelihood it would be removed from the prior permission category," said sources.

The trigger to initiate CBI probe against SCPPL lies in the Gujarat government representation on "Embezzlement of fund by Teesta Setalvad and others" to Home Ministry that had also accused Ford Foundation for interfering in the Country's internal affairs.

The letter had raised questions on SCPPL, a private company 'limited by shares', being given grant of $2, 90,000 by Ford Foundation.

Grant of $2,90,000 to SCPPL covers $1,68,204 in salaries for the staff of the company and $47,546 for its office expenses. Thus about 75% of the grant is meant for running the company's office and not for realizing any clear objective, said Gujarat government's letter.

"During the course of investigation it is revealed that Sabrang Trust and Sabrang Communication & Publishing Pvt Ltd (SCPPL) has received a total grant of $ 5,40,000 from Ford Foundation, a US NGO having office at 55 Lodhi estate. It is revealed during the course of investigation that Ford Foundation, established with the stated goal of promoting communal harmony, democratic principles and social justice has been indulging in covert activities of promoting interests that are completely contradictory to the said goals," the Gujarat government letter said.