NEW DELHI: The central government told the Delhi High Court that the Centre for Policy Research think tank had been using foreign funds for “undesirable purposes” and its activities are likely to affect the economic interests of the country.
In an affidavit filed as a reply to the organisation's challenge against the suspension of its certificate under the Foreign Contribution Regulation Act, the Home Ministry said the violations of the think tank are "grave in nature."
“During the examination of report of survey operation shared by the Income Tax Department, it has been noticed that the petitioner is receiving and utilizing FC for the purposes other than that for which it was registered and the petitioner is utilizing FC for undesirable purposes,” it said.
It was submitted by the organisation that without foreign contribution it would be forced to shut down, adding that it has come to a grinding halt in the past six months and 23 researchers have already left the organization.
The affidavit, however, stressed the action is to safeguard the economic interests of the state.
The Income Tax department conducted a survey operation in September 2022 and shared certain relevant findings with the ministry pointing to the utilisation of foreign contributions received by the CPR, the affidavit said.
"Hence to stop continuation of diversion and mis-utilisation of FC by the petitioner and to safeguard the economic interest of the state, the foreign funding of the petitioner's activities needed to be stopped with immediate effect," the affidavit read.
It added that, in such circumstances, giving any prior notice would defeat the very purpose of immediate stoppage of mis-utilization of foreign funding. No notice was served, the affidavit said.
Considering the national security aspect, the answering respondent (Centre) implements the Act with the assistance of central security agencies. Reports from central security agencies are obtained about donors and recipients from time to time, the affidavit stated.
Based on these reports, the answering respondent takes appropriate action/decision as per law, it was added.