In a significant development, Oxfam India informed the Delhi High Court today that its operations have practically come to a standstill due to the central government’s refusal to renew its Foreign Contribution (Regulation) Act (FCRA) license, as reported by The Indian Express.
Oxfam India, a well-known non-profit organization, witnessed the expiration of its FCRA registration, essential for receiving foreign funds, on January 1, 2022, following the Union home ministry’s decision not to renew the license. Additionally, in October of the previous year, the Income Tax department revoked its tax exemption status.
In an affidavit filed in the Delhi High Court last week, Oxfam India expressed that three out of its seven development projects had to be discontinued due to a lack of funds, and others are also scheduled for termination soon.
The affidavit stated, “With the expected completion of termination of remaining projects by January 20, 2024, the petitioner will not have any projects in operation…This means that the petitioner will be without any work on the ground.”
This development closely follows the Modi government’s cancellation of the FCRA registration for the Centre for Policy Research.
Currently, Oxfam India is operating with only 15 staff members, a significant reduction from the 251 staffers it had until December 2021. The organization anticipates further downsizing to four employees by March.
The non-profit has closed all its Indian offices except the one in Delhi, which is also in the “process of closure due to a lack of available funds,” as mentioned in the affidavit.
According to the affidavit, Oxfam India tapped into its reserves, spending Rs 7.04 crore in FY2023. In the current fiscal year, until November, it spent Rs 3.36 crore from the reserves, which now stand at Rs 1.54 crore.
Facing an investigation by the Central Bureau of Investigation (CBI), Oxfam India expressed concerns about its ability to pay salaries, social security benefits to its remaining staff, and rent for its warehouses if the FCRA license is not renewed.
The Delhi High Court is scheduled to hear the matter next on February 7, 2024. The fate of Oxfam India’s operations and projects hangs in the balance as it grapples with financial constraints and legal challenges.
