Chartered Accountant Firm Tasked to Examine Foreign Funding Records from 2019 to 2022
NEW DELHI/MUMBAI (India CSR): In a rare and significant move, the Ministry of Home Affairs (MHA) has ordered a forensic audit of Give Foundation, an NGO headquartered in Ahmedabad and popularly known for its online giving platform GiveIndia. The audit will focus on the receipt and utilisation of foreign contributions for three consecutive financial years — 2019-20, 2020-21, and 2021-22 — under the Foreign Contribution (Regulation) Act (FCRA).
The decision has raised eyebrows in the non-profit sector and is being seen as part of the government’s ongoing crackdown on NGOs over alleged financial irregularities.
CA Firm Brought In Amid Tightened FCRA Norms
The audit has been assigned to Mumbai-based chartered accountancy firm Borkar & Muzumdar, which has started reaching out to vendors and associates of the foundation, requesting extensive documentation. Sources say the firm has asked for agreements, invoices, work orders, total expenses, and details of persons who introduced the vendors to the NGO.
However, several vendors are reportedly reluctant to comply, citing that FCRA audits should be limited to the organization under scrutiny — not extended to third-party entities, unlike under the Income Tax Act.
Legal Powers Invoked: A Rare Move
The MHA is exercising its authority under Section 20 (power to call for information) and Section 23 (inspection of accounts) of the FCRA, indicating serious concerns about compliance and possible irregularities in fund usage.
“This combination of legal provisions and forensic auditing by a third-party CA firm is highly unusual. It hints at a high-level probe, possibly triggered by serious red flags or complaints,” said Isha Sekhri, partner at Isha Sekhri Advisory LLP, a firm specializing in FCRA and FEMA matters.
Silent Leadership, Unanswered Questions
Give Foundation’s founder and director Atul Satija has not responded to repeated queries from the media. Likewise, the MHA has maintained complete silence on the reasons for initiating the audit.
Satija is a well-known figure in the Indian philanthropy and social impact space, and his silence amid this financial scrutiny has only added to the unease.
Bigger Crackdown on NGOs Suspected
The forensic audit comes amid heightened scrutiny by the government on NGOs receiving foreign funds. The Centre has tightened FCRA rules in recent years, including a 2020 amendment that banned re-granting of foreign donations to smaller grassroots NGOs.
“This law has severely hurt the last-mile operations of rural NGOs,” said an NGO executive, who wished to remain anonymous. “Now, with forensic audits and vendor-level scrutiny, even vendors are being dragged into a compliance nightmare.”
All NGOs receiving foreign donations are now mandated to operate through a designated branch of the State Bank of India in New Delhi, allowing the MHA to monitor foreign inflows directly. Further, donors in the Prior Reference Category (PRC) list require MHA approval before transactions can proceed.
FCRA Origins and Political Sensitivity
The FCRA was originally enacted during the Emergency in 1976 and was intended to prevent foreign influence in Indian politics and governance. Over the decades, it has evolved into a potent tool of control, often criticised by civil society groups for stifling dissent and choking legitimate philanthropic activity.
The recent actions against Give Foundation are now being seen as a continuation of the government’s firm stance against NGOs it deems non-compliant or politically inconvenient.
(India CSR)
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