Mallika Nadda, once a history professor and now chairperson of Special Olympics India, runs Chetna, which focuses on disabled children and women’s empowerment.
NEW DELHI (India CSR): Questions are being raised about the financial dealings of an NGO run by Mallika Nadda, wife of Bharatiya Janata Party (BJP) National President JP Nadda, as reports reveal the organization received over Rs. 4 crore in Corporate Social Responsibility (CSR) funds from various public sector undertakings (PSUs) and private companies, particularly after 2015-16. Concurrently, allegations have resurfaced concerning JP Nadda’s alleged intervention in a high-profile corruption case involving an IAS officer, Vineet Chaudhary, highlighting potential conflicts of interest.
Mallika Nadda, formerly a History Professor at Himachal Pradesh University, founded the NGO “Chetna” in 1999 with the stated aim of working with disabled children and providing self-employment training to women. She currently serves as the Chairperson of Special Olympics Bharat. While “Chetna” initially focused on these social welfare activities, its reach and activities reportedly expanded significantly after the BJP came to power at the Centre, especially post-2014. This expansion included the construction of a large, three-floor Research and Rehabilitation Center between 2015 and 2016.
The CSR Conundrum: Funding “Chetna”
CSR was made compulsory in India by the Companies Act 2013, requiring large profitable companies to spend 2% of their average net profit on social welfare activities if they meet specific criteria: a net profit of Rs. 5 crore or more, a net worth of Rs. 500 crore or more, or a turnover of Rs. 1000 crore or more. Critics allege that CSR funds can sometimes be used as a front for tax evasion and the conversion of black money into white, with NGOs potentially returning a portion of the funds to the donor company.
“Chetna” has been a significant recipient of these funds:
SJVN (Satluj Jal Vidyut Nigam Limited)
In 2015-16, this Navratna PSU, under the Ministry of Power, sanctioned Rs. 25 lakh for “Chetna’s” building construction, coinciding with JP Nadda’s tenure as Union Health Minister.
Another Rs. 45 lakh was provided in 2017-18 for the Research and Rehabilitation Center.
In 2021-22, SJVN granted Rs. 1.37 crore to “Chetna” for furnishing the ground floor and installing a lift.
REC Limited (Rural Electrification Corporation): Since 2019-20, this Ministry of Power PSU has provided Rs. 2 crore for a boundary wall, gate, a third-floor Research and Rehabilitation Center, and a playground for disabled children.
Other Government Companies
Rail Vikas Nigam Limited (RVNL) donated Rs. 8,79,000.
National Hydroelectric Power Corporation (NHPC) provided Rs. 5 lakh for an audiometry room and the Research and Rehabilitation Center. Notably, in 2022, NHPC signed a Memorandum of Understanding (MoU) with Special Olympics Bharat, promising Rs. 1 crore to train disabled individuals, an organization where Mallika Nadda serves as president, the visual report said.
***
Private Companies
In FY 2023-24, IFFCO Tokio, an Indian-Japanese insurance venture and active participant in the Pradhan Mantri Fasal Bima Yojana, donated ₹15 lakh for a sports complex.
Torrent Pharmaceuticals contributed Rs. 3,29,000 in 2023 for CCTV cameras.
Royal Orchid Hotel Limited gave Rs. 3 lakh, and CM Industries contributed Rs 1,71,000 for education and poverty alleviation.
Aromatics India Private Limited also made a donation in 2022-23, though the exact amount remains undisclosed.
When questioned, these companies reportedly offered no explanation for choosing “Chetna” for their CSR activities, nor did Mallika Nadda respond to inquiries regarding significant PSU funding prior to 2015.
***
The AIIMS Scam and Alleged Influential Backing
Beyond the NGO’s funding, JP Nadda’s reputation for avoiding personal favors and controversies in his native Bilaspur was reportedly contradicted by his actions between 2012 and 2017, specifically his deep interest in a case involving IAS officer Vineet Chaudhary.
In 2012, Sanjeev Chaturvedi, then Chief Vigilance Officer at Delhi AIIMS, exposed an alleged ₹7000 crore scam involving corruption in construction, medical equipment procurement, and tenders. Vineet Chaudhary, a 1982-batch IAS officer from the Himachal cadre and then Deputy Director at AIIMS, was accused in this scam.
As a Rajya Sabha MP under the UPA government in 2013, Nadda began questioning Chaturvedi’s appointment, writing to then Union Health Minister Ghulam Nabi Azad. The Health Ministry confirmed the appointment was lawful.
Upon becoming Union Health Minister in 2014 under the new BJP government, Nadda’s ministry was responsible for providing documents for Chaudhary’s investigation, raising fears of his influence.
In 2015, the Centre for Public Interest Litigation (CPIL) filed a petition expressing concerns about Nadda’s potential to affect the investigation. While Nadda initially called the allegations a political conspiracy in an April 2015 affidavit, he recused himself from all matters related to Vineet Chaudhary a month later, transferring responsibility to the Department of Personnel and Training (DoPT). This move was seen as strategic, and according to a 2017 India Today report, the Health Ministry gave Vineet Chaudhary a clean chit two years later.
The connection between Nadda and Chaudhary dates back to 1998-2003, when Chaudhary worked under Nadda as Director and Secretary in the Himachal Pradesh government, during which time the state’s health department was allegedly mired in corruption.
***
Highlights
- 💰 Mallika Nadda’s NGO received over ₹4 crore in CSR funds, mainly from government PSUs.
- 🏢 Several top public sector undertakings repeatedly funded the same NGO without clear selection transparency.
- 🔍 CSR funds are often exploited for tax evasion and money laundering under the guise of social welfare.
- ⚖️ JP Nadda allegedly intervened in a ₹7000 crore AIIMS corruption case to protect a close IAS officer.
Key Insights
- 💸 CSR as a political funding tool: The recent video report reveals how CSR funds, designed to support social causes, can be manipulated to funnel money into NGOs connected to powerful political families. Overall, the video presents a critical examination of the interplay between political power, corporate funding, and social welfare initiatives in India, exposing vulnerabilities in governance and raising concerns about accountability and ethical standards in the use of CSR resources. This not only undermines the spirit of CSR but also raises ethical and legal questions about the misuse of public funds for personal or political gain. The repetitive funding of Mallika Nadda’s NGO by numerous government PSUs indicates a possible nexus of politics and corporate social responsibility, demanding stricter oversight and transparency.
- 🤝 Political influence in public sector funding: The continuous flow of funds from central PSUs such as SJVN, REC, and NHPC to the same NGO implies political favoritism. Normally, CSR funding involves a competitive process with clear criteria, but the lack of responses from these companies about their selection process suggests decisions might be politically motivated rather than merit-based. This challenges the credibility of CSR governance frameworks in India.
- 🕵️♂️ Controversy over JP Nadda’s political interventions: JP Nadda’s alleged interference in the appointment and investigation related to IAS officer Vineet Chaudhary, implicated in a massive health sector scam, points to the problematic intersection of politics and bureaucracy in India. It highlights how political power can obstruct accountability and delay justice, thereby perpetuating corruption within government institutions.
- 🏥 Public sector corruption and accountability challenges: The AIIMS scam involving inflated procurement costs and phantom firms reveals ongoing systemic corruption challenges in public healthcare management. The video links these issues to political protection, which complicates efforts to root out corruption. The case exemplifies the difficulties faced by whistleblowers and anti-corruption officers in India.
- 📈 Expansion of NGO activities aligned with political power: The growth of Mallika Nadda’s NGO after BJP’s rise to power demonstrates how political changes can directly impact the scaling and funding of social organizations. This raises questions about the independence of NGOs and whether their sustainability is linked to political patronage rather than genuine social impact or performance.
(India CSR)
