'Protests Against Public Projects Being Funded By Foreign Entities Through NGOs': I-T Department Tells Supreme Court

The Income Tax (I-T) Department has informed the Supreme Court of a significant issue regarding foreign entities funding Indian NGOs and trusts to hinder public projects and affect India's economic interests.

The I-T department stated, “There is a concerted effort by foreign entities in funding Indian NGOs/trusts in order to stall the public projects and affect the economic interests of India.”

This came as a response to NGO Environics Trust's challenge against the department's notice for reassessment of tax returns as per a report by The Indian Express.

In its affidavit, the I-T department stated that its investigation found the activities of the NGO to be questionable, as they were funded primarily by foreign entities.

The trust allegedly engaged in hiring protesters to obstruct public projects and received more than 90 per cent of its income from foreign donations.

The department's investigation revealed that the trust funded protests against development projects in India, misusing foreign contributions. For instance, it transferred funds to individuals involved in protests in Odisha under the guise of distributing relief packages.

The affidavit also highlighted agreements between the trust and foreign entities, such as 'Both ENDS' and 'Oxfam India,' indicating their involvement in protests against various projects in India.

Additionally, the trust was found to be associated with protests against multinational corporations and coal projects, which were not aligned with its stated objectives.

Moreover, the I-T department criticised the NGO for not disclosing the cancellation of its registration under various sections of the Income Tax Act and FCRA to the high court.