The Ministry of Home Affairs (MHA), on Thursday, cancelled the FCRA license of climate activist Sonam Wangchuk's Students Educational and Cultural Movement of Ladakh (SECMOL) with immediate effect following the surfacing of glaring FCRA violations and clandestine transfer of funds by Wangchuk, Ministry officials said.
An order issued by the MHA said: "Whereas 'Students Educational and Cultural Movement of Ladakh (SECMOL), (herein after referred to as 'the association'), was granted registration under the Foreign Contribution (Regulation) Act, 2010, (herein after referred to as "the Act") with registration certificate to accept foreign contributions (hereinafter referred to as "the FC") for undertaking cultural and educational programme."
"And whereas, show cause notice dated August 20, 2025, was served to the association through speed post followed by mail dated September 10, 2025, to show cause as to why its FCRA registration certificate should not be cancelled in exercise of Section 14 of the Act 3. In response to the show cause notice dated August 20, 2025, the association made their submission with mail dated September 19, 2025," the order said.
"Submission of the association has been examined and following violations have been established: "During FY 2021-22, Sonam Wangchuk has deposited Rs 3.5 lakh into the FCRA account of the association in violation of section 17 of the Act."
"Reply of the association: The amount of Rs 3,35,000 was deposited in FCRA's account as it was sale proceeds of the old bus procured on July 14, 2015, from the FCRA fund."
"The sale proceeds for any asset which was procured from FCRA funds need to be deposited only in FCRA's account as per the guidelines."
"Finding of the Ministry: Reply of the association is not tenable. It is mentioned in Column 2(i)(a) of FC-4 for the Financial year 2021-22 that a sum of Rs 3,35,000 was received from Sonam Wangchuk as foreign donation. However, it is stated by the association in its clarification that this amount is sale proceeds of old bus procured from FCRA fund."
"Although credit entry of this much amount is not found in FCRA account of the association. It seems that the amount has been received in cash in violation of Section 17 of the Act which is not properly disclosed by the association in its reply."
"Further, an amount of Rs 3,35.000 has been intimated by the association in FC-4 as FC donation from Sonam Wangchuk. However, this transaction is not reflected in FCRA account in violation of Section 18 of the Act."
"During FY 2020-21, local funds amounting to Rs 54,600 were deposited in the FCRA account of the association by three individual (Rs 18,200 each) in violations of Section 17 of the Act."
"Reply of the association:- The amount of Rs 54,600 shown as a local fund (deposited by three different individuals of Rs 18,200 each), was received from volunteers towards their food and accommodation. However, this amount was mistakenly transferred into our FCRA account instead of the local account. Our website clearly specifies that Indian volunteers should transfer contributions to the local account and foreign volunteers to the FCRA account."
"Despite these instructions, the volunteers inadvertently sent to the wrong account."
"Finding of the Ministry: - As admitted by the association, local fund were credited into FCRA account in violation of Section 17 of the Act."
"As per information available in the AR for FY 2021-22, the association has received an amount of Rs 4,93,205 from a foreign donors as detailed below in violation of section 12(4)()() of the Act."
"Reply of the association:- We received Rs 4,93,205 from framstidjorden (Stockholm-based Swedish organisation) for educational programme for youths under the FE project for creating awareness among youth on issues such as migration, climate change, global warming, food security and sovereignty and organic farming through different workshops and trainings."
"The funds were utilised strictly in line with the organisation's objectives and for the specific purposes for which they were allocated. Hence, all these activities were educational and there was no violation."
"Finding of the Ministry: Association in its reply admitted that the donor organisation has given the donation for study on Sovereignty of the country including some other topics and the fund had also been spent in line with the objectives of the foreign donors. The Foreign contribution cannot be accepted for study on Sovereignty of the nation."
"This act of the association is against the national interest of the country in violation of section 12(4)()(0) of the Act."
"As per annual return for FY 2021-22 the association has returned an amount of Rs 19,600 to the donors itself in violation of conditions for registration under section 12(4)."
"Reply of the association: - Association has admitted that an amount of Rs 19,600 received from Miss Megha Sanghavi as foreign donation has been returned to her."
"Finding of the Ministry:- As such there is no provision in the Act for returning of FC to its donor. The act of the association to returning of FC to the donor is likely to use the Foreign Contribution for personal gain or divert for undesirable purpose in violation of conditions for registration under section 8(1)(a) of the Act."
"As per annual return filed by SECMOL for the FY 2020-21, it has received foreign contribution of Rs 79,200. However, the same has not been credited in the FCRA bank account. It is suspected that such funds have been received in local bank accounts in contravention of Section 17 of the Act."
"Reply of the association: - The amount of Rs 79,200 was directly deducted from staff salaries and fellows stipends, and therefore no separate transaction took place. Since, it was deducted at source as food fees, it was recorded in the books of accounts as food fee receipts, and the same amount was utilised towards food expenses."
"Finding of the Ministry: - As clarified by the association that the amount of Rs 79,200 was directly deducted from salary of the staff means that this amount was never disbursed to the staff and hence treatment of this amount as other receipts from projects/activities is incorrect as shown in Column 2(Ob)(1) of FC-4 for the financial year 2020-21."
"This indicates that the account of the association is not well maintained, the intimation of this amount as receipt in FC-4 is violation of Section 18 and 19 of the Act."
"And whereas, in view of violations as enumerated above under sections 8(1)(a), 4718 19 and conditions of registration under section 12(4)()Q of the Act, the FCRA registration certificate of the association is liable to be cancelled in exercise of power under section 14 of the Act.
"Now therefore, considering the facts and position narrated in preceding paras, the Competent Authority, hereby, in exercise of the powers conferred under Section 14(1) of the Act, cancels with immediate effect the FCRA Certificate of Registration number granted to the association "Students Educational and Cultural Movement of Ladakh"."
"This issues with the approval of the Competent Authority," the MHA order said.