The Union Home Ministry suspended the foreign funding licence of Kerala (Kozhikode)-based NGO Markazul Ighasathil Kairiyathil Hindiyya for violating provision of the Foreign Contribution Regulation Act, 2010 (FCRA).
This order will bar the Markazul from receiving foreign funds without prior approval of the Union government.
The order was passed by the ministry on August 27 and reported by The Times of India on Saturday (September 4).
The Markazul also operates the Relief and Charitable Foundation of India (RCOI).
The ministry order has noted that Markazul diverted the funds and misrepresented the facts to the ministry. It also misutilised the funds.
The first questionnaire was sent by the ministry on April 5, 2018.
An amount of INR 5o lakh was received back by the Markazul on January 13, 2015. Earlier, this money was withdrawn to seal some land deal. Once the deal was cancelled, the money was received back. But, this money was never returned by the Markazul.
Markazul claimed this amount was used for distribution in relief work. But, its records showed that the cash distribution had taken place between July-December 2014.
The NGO was founded in 2000 as a vision of Kanthapuram A P Aboobacker Musliyar and his son, Muhammed Abdul Hakkim, is its general secretary.