Ahmedabad: The Union Home Ministry has ordered a forensic audit of the accounts of Give India, an NGO with its registered office in Ahmedabad. The audit will cover three financial years: 2019-20, 2020-21, and 2021-22.

The chartered accountant company Borkar and Majumdar has been appointed to conduct the audit. They will examine the amount of foreign donations received by the NGO and how these funds were utilized.

Sources familiar with the matter indicate that the order for the audit was issued under sections 20 and 23 of the Foreign Contribution (Regulation) Act (FCRA). However, the specific reasons for the audit are not yet clear.

Experts suggest that the Home Ministry can order an investigation if there are suspicions of misuse of foreign funds or non-compliance with FCRA regulations regarding information provision. However, it is unusual for the ministry to order both information provision and account verification simultaneously, along with the appointment of a CA company for a forensic audit. This suggests that the Home Ministry intends a detailed investigation by experts into how the NGO has used the foreign donations it received.

Give India’s website states that the organization works to alleviate poverty by supporting effective social initiatives and helping individuals and organizations donate to specific causes.

It remains unclear whether the Home Ministry’s order was based on a suo moto action or a complaint of misuse of funds. Experts note that this order indicates a potential serious violation of legal provisions or a concerning use of donated funds. If not, this would represent a significant shift in the Home Ministry’s approach to investigating FCRA violations.

The government has been increasingly monitoring the inflow and utilization of foreign donations in the country. NGOs receiving foreign funds are required to maintain accounts with a designated branch of the State Bank of India in New Delhi. Funds are released only after approval from the Home Ministry, especially if the NGO is placed under the ‘Prior Reference Category’ or watchlist.

Following the Home Ministry’s order, the CA company has reportedly requested details from Give Foundation’s vendors, including the total expenditure by Give Foundation, contracts, work orders, bills, and contact information.