FCRA cancellation forces Navsarjan NGO to lay off its 80-odd staff

Ahmedabad: Facing cash crunch after the cancellation of FCRA licence, Gujarat-based NGO Navsarjan Trust, which was working for the last 27 years, has sought resignation of its 80-odd employees and said that the three schools run by it shall be closed.

According to the MHA officials quoted in a report, Navsarjan Trust was under the scanner following adverse field reports from the intelligence agencies. The FCRA licence, however, was “inadvertently” renewed in August this year, before it was cancelled on December 15 when the error was discovered during a scrutiny. The FCRA registrations of a few other NGOs were also cancelled.

Cancelling the FCRA licence of Navsarjan Trust, the MHA in its order stated: “Navsarjan Trust has come to adverse notice for its undesirable activities aimed to affect prejudicially harmony between religious, racial, social, linguistic, regional groups, castes or communities

Managing Trustee of Navsarjan Trust, Martin Macwan said the NGO was unable to pay for the salaries of its staff after the Centre revoked its licence to get foreign funds under the Foreign Contribution Regulation Act (FCRA).

“It is impossible for us to pay salaries of our employees after the Centre cancelled our FCRA licence. We are facing acute cash crunch due to that move. Thus, we have asked all our 80-odd employees to tender their resignations,” Macwan told PTI.

According to him, the NGO needs around Rs 2.75 crore annually to meet various expenses.

“We are largely dependent on the funds from foreign sources to meet our expenses, which runs into Rs 2.75 crore per annum. About 85 per cent of that comes from foreign countries. Now, as our FCRA licence has been cancelled, it is impossible to run our operations or to pay salaries from what we get from local sources,” said Macwan.

The NGO also runs three schools with 12 teachers, one each in Ahmedabad, Surendranagar and Patan district. Now, these schools, where 102 students of 5th standard to 9th standard, are enrolled, are on the verge of closure, said Macwan.

“Now, we have to shut these schools too, as we are unable to pay salaries and meet other operational expenses. These teachers will be asked to leave only after the completion of this academic session,” said Macwan.

A week back, seven NGOs, including Navsarjan Trust, were barred by the Centre government from receiving foreign funds after their FCRA licences were cancelled following alleged adverse intelligence reports against them.

The decision has been taken after the Ministry of Home Affairs (MHA) conducted an inquiry into the functioning of the NGOs whose FCRA licences were renewed in the recent past.

With inputs from PTI