The Union Home Ministry on Thursday cancelled the FCRA licence of Students' Educational and Cultural Movement of Ladakh (SECMOL), founded by noted educationist and activist Sonam Wangchuk.
The action of the ministry was based on several alleged discrepancies detected in the accounts of the organisation, including a fund transfer from Sweden, which the ministry alleged was "against national interest."
The action came shortly after the Central Bureau of Investigation (CBI) launched an inquiry into alleged FCRA violations by SECMOL and the Himalayan Institute of Alternatives Ladakh (HIAL), both associated with Wangchuk.
While no FIR has been registered yet, CBI officials have been in Ladakh for the past week, scrutinising financial records of HIAL and the SECMOL.
The probe follows a complaint from the Union Ministry of Home Affairs regarding alleged receipt of foreign funds without FCRA clearance.
The developments come amid heightened tensions in Ladakh after violent protests on Wednesday resulted in the killing of four people and injured several others. Four people were killed and several were injured after police opened fire on protesting youth after a massive protest demanding statehood for Ladakh turned violent on Wednesday. Protesters set fire to a BJP office in Leh and several vehicles, including a police van, prompting security forces to use tear gas to restore order.
The BJP-led Centre has put the blame on Wangchuk, accusing him of inciting the violence, while the activist, who has significant influence in the region, has attributed the violent protests to anger and frustration among the youth over "six years of unemployment and unmet promises at every level."
The home ministry had earlier issued a show-cause notice to SECMOL seeking explanation on various irregularities observed in the finances of the organisation.
It was alleged that during financial year 2021-22, Wangchuk deposited Rs 3.5 lakh into the FCRA account of the association in violation of section 17 of the Act.
According to the explanation given by SECMOL, it was the sale proceeds of the old bus procured on July 14, 2015 out of FCRA funds.
It said the sale proceeds for any asset which was procured from FCRA's funds need to be deposited only in FCRA's account as per the guidelines.
The ministry said that the amount has been received in cash in violation of section 17 of the Act which is not properly disclosed by the organisation in its reply.
"Further, an amount of Rs 3.35 lakh has been intimated by the association... as FC donation from Sonam Wangchuk. However, this transaction is not reflected in FCRA Account in violation of section 18 of the Act," it said.
The ministry also red flagged another transfer of Rs 54,600 local funds in FCRA accounts of the organisation which the latter claimed a mistake.
A foreign contribution from Sweden of around Rs 4. 93 lakh for creating awareness among youth on issues such as migration, climate change, global warming, food security and sovereignty and organic farming through different workshops and trainings is also under the scanner of the ministry.
Rejecting the arguments of SECMOL that the funds were utilized strictly in line with the organisation's objectives for educational purposes only, the ministry has said the foreign contribution cannot be accepted for study on the sovereignty of the nation as it is against "national interests."
Citing several other discrepancies in the accounts of the organisation, the home ministry, in its order issued on Thursday, said it invoked its powers under Section 14 of the FCRA to cancel the licence granted to the organisation with immediate effect.
Speaking to PTI, Wangchuk said the CBI team visited the institutions about 10 days ago with an official order.
"They claim we violated FCRA norms by receiving foreign contributions. But these were payments for knowledge-sharing services with the UN, a Swiss university, and an Italian organisation, with taxes duly paid," he clarified.
He alleged that the probe team initially focused on the 2022–24 period but later began seeking financial details from earlier years, including 2020 and 2021.
“They even went to our school, which is not mentioned in the complaint,” Wangchuk said. Both HIAL and SECMOL provide free education and stipends to underprivileged students in Ladakh, he added.
Wangchuk also pointed to a series of actions against him in recent months: a sedition case, a land lease dispute related to HIAL, income tax notices, and a revived complaint about unpaid labourers from four years ago.
“It’s like guns blazing from all sides,” he said.
The activist, who has been leading the peaceful agitation for statehood and constitutional safeguards for Ladakh, also raised the alarm over his personal safety.
"I see they are building up a case to bring me under the Public Safety Act and throw me in jail for two years," he said.
"I am ready for that, but Sonam Wangchuk in jail may cause them more problems than free Sonam Wangchuk," he added.
(With inputs from PTI)