Why Sonam Wangchuk’s NGO License Was Canceled and Foreign Funding Barred

National News: Questions have been raised about the NGO run by Ladakh-based social activist Sonam Wangchuk and how it used foreign funding. The government has canceled the NGO’s license, and the CBI has started an investigation. Wangchuk has called the action a revenge move, saying he has been blamed for the violence during protests. Here’s a look at what his organization does, how it was started, and the rules for NGOs to receive foreign donations in India.

Himalayan Institute of Alternatives, Ladakh (HIAL)

Sonam Wangchuk founded the Students’ Educational and Cultural Movement of Ladakh (SECMOL) in 1994. Its aim was to provide relevant and practical education to Ladakhi youth while connecting them with local needs and culture. Later, as an extension of this idea, he established the Himalayan Institute of Alternatives, Ladakh (HIAL). SECMOL was founded in 1994 so that children would not be burdened only with paper degrees but would also learn real-life skills. HIAL took shape around 2017-18, with the idea of finding solutions for Ladakh and the Himalayan region that were environmentally sensitive. Its clear purpose was to address issues like climate change, ecology, and education reform based on local experiences.

What is FCRA?

Many NGOs in India rely on foreign funding. But such funding cannot come directly; a law has been made for this. The Foreign Contribution Regulation Act (FCRA) was first implemented in 1976 and later amended in 2010.
Under it, any NGO wishing to receive foreign funds must register with the government under FCRA.

Why was Wangchuk’s NGO license canceled?

According to government and media reports, the approvals of SECMOL and HIAL were canceled after alleged irregularities were found in their registrations. The main reasons cited are:

Required information was often not submitted on time in reporting.
Discrepancies were reported between the use of received funds and the declared objectives.
The government’s argument is that the use of foreign donations lacked transparency.
As a result, the Home Ministry canceled the FCRA license renewal.

What does license cancellation mean?

With the license canceled, the organization can no longer directly accept foreign donations.
It will have to operate using only domestic funds, donations, or CSR (Corporate Social Responsibility) contributions.

How can the license be restored?

India allows the possibility of re-obtaining FCRA registration.
The organization must first provide clarification on the points that led to cancellation.
An application can be made to the Home Ministry for reconsideration.
If there is no criminal case in the use of funds, corrective measures can allow re-registration.
The courts can also be approached if the cancellation seems unjust.
By strengthening transparent accounting and regular reporting, the organization can rebuild its credibility.

Why did the CBI investigation start?

Complaints regarding the NGO’s foreign donations and their usage reached the government. The allegation is that some funds were used for purposes other than those declared. CBI investigations are considered standard procedure in cases of FCRA violations. However, the investigation is still at an initial stage, and the final decision is pending. This is only an investigation; the CBI has not registered a case.

Wangchuk is not alone; many licenses canceled

This case is not only about Sonam Wangchuk’s NGO. In recent years, thousands of NGOs have had their FCRA licenses canceled, ranging from small organizations to well-known names. The government argues that misuse of foreign funding can go against national interest. On the other hand, many social activists say the rules are so strict that they stifle organizations that are actually working.