Ford Foundation off govt watch list ahead of Modi’s US visit

Now, any fund flow from Ford Foundation to any person, NGO or organisation in India need not be referred for clearance to this (home) ministry. HOME MINISTRY, in a letter to the RBI asking it to inform all banks about the decision

The Union home ministry has removed the Ford Foundation from its watchlist under which any flow of funds from the US-based international donor agency, any Indian non-governmental organisation (NGO) or person had to be vetted by the ministry before being disbursed to the recipient.

The home ministry’s decision comes prior to Prime Minister Narendra Modi’s visit to the USA next month.

“I t has been decided t o remove Ford Foundation, USA, from the prior reference category with immediate effect. Now, any fund flow from Ford Foundation to any person, NGO or organisation in India need not be referred for clearance to this ministry,” the home ministry’s letter to the Reserve Bank of India (RBI) said asking it to inform all banks about the decision.

In April last year, the ministry had put the agency on its watch-list for funding activist Teesta Setalvad’s NGOs, saying they didn’t use the funds provided for the stated purpose. This was in violation of the Foreign Contribution Regulation Act.

Setalvad, a vocal critic of Modi, denied the charge but the home ministry asked the CBI to investigate further. The Ford Foundation also took up the matter with the home ministry.

The ministry asked the foundation to get itself registered under the Foreign Exchange Management Act (Fema) that governs foreign exchange transactions in the country.

The foundation expressed its gratitude to its many partners in the government with whom it worked to resolve the outstanding issues.

“The Ford Foundation has been honoured to support the people and institutions of Indian society over the last 64 years; we look forward to doing so for many years to come,” the organisation said.