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

Ahmedabad, Dec 24 (PTI) Facing cash crunch after the cancellation of FCRA licence, Gujarat-based NGO Navsarjan Trust, which was working for Dalit rights 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.

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.

Macwan founded this NGO in 1989 to fight for the rights of Dalits and to take up issues concerning them, such as manual scavenging and social boycott.

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.

Apart from running various awareness programs for the upliftment of Dalits across the state, the NGO also runs three schools, 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.

“These three schools, which impart education to 102 students of extremely poor Dalit and tribal communities, are having 12 teachers. Now, we have to shut these schools too, as we are unable to pay their 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.

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