Centre Cancels FCRA Licence of Sonam Wangchuk’s NGO After Ladakh Violence, Cites Financial Irregularities and Provocative Statements.

New Delhi:

In a significant development amid escalating tensions in Ladakh, the Union Ministry of Home Affairs (MHA) on Thursday cancelled the Foreign Contribution Regulation Act (FCRA) registration of renowned climate activist Sonam Wangchuk’s NGO, the Students Educational and Cultural Movement of Ladakh (SECMOL). The move came just a day after four civilians were killed in police firing during a violent protest in Leh, which the government has attributed to Wangchuk’s “provocative statements”.

Wangchuk, who has been on a hunger strike for over a month demanding statehood for Ladakh and inclusion under the Sixth Schedule of the Constitution, called off his fast on Wednesday following the violence. The Centre, however, claimed that the protest had turned violent due to Wangchuk’s inflammatory rhetoric, which allegedly incited the mob.

The cancellation of the FCRA licence was formalized through an order signed by MHA Deputy Secretary Rajesh Kumar T, invoking Section 14(1) of the FCRA. The order reads:

“Considering the facts and position narrated by the organisation, 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 granted to the association – Students Educational and Cultural Movement of Ladakh.”

Background: CBI Inquiry and Show Cause Notices

The Central Bureau of Investigation (CBI) had begun a preliminary inquiry into SECMOL two months ago over alleged FCRA violations. This led to the MHA issuing a show cause notice on August 20, followed by a letter on September 10, asking the NGO to explain why its FCRA licence should not be revoked. The organisation submitted its reply on September 20, but the MHA deemed the explanation unsatisfactory and cited multiple violations.

Alleged Violations Cited by MHA

The MHA order outlines several financial irregularities that allegedly violate various sections of the FCRA, including:

• Improper Cash Deposits:
  In 2021-22, Wangchuk allegedly deposited Rs 3.5 lakh in SECMOL’s FCRA account — a violation of Section 17 of the Act. The NGO claimed this was the sale proceeds of an old bus procured with foreign funds. However, the MHA said this explanation was “untenable” and that the source of funds appeared to be undisclosed cash.
• Unrecorded Donation from Wangchuk:
  The NGO stated that Rs 3.35 lakh was a foreign contribution from Wangchuk himself. However, the amount was reportedly not reflected in SECMOL’s FCRA account, violating Section 18.
• Improper Local Fund Deposits:
  During 2020-21, Rs 54,600 from three individuals (Rs 18,200 each) was deposited into the FCRA account instead of the local account. The NGO said this was a mistaken deposit from volunteers for food and lodging, but the MHA considered it another violation of Section 17.
• Foreign Donations for Politically Sensitive Activities:
  The NGO received Rs 4.93 lakh from foreign donors in 2021-22 for “youth awareness programmes.” However, the MHA said one of the topics mentioned in the NGO’s reply was related to “sovereignty of the country,” which it termed illegal.
• Unaccounted Foreign Contribution:
  In 2020-21, SECMOL received Rs 79,200 as foreign contribution, which was not deposited in the designated FCRA bank account. The NGO explained that this amount was deducted from staff salaries and stipends for food fees. However, the MHA stated that the amount should not have been treated as food receipts since it was never disbursed to staff, thus raising concerns about financial mismanagement.

“This indicates that the account of the association is not well maintained,” the MHA concluded.

Political Context and Government’s Stance

The crackdown on SECMOL comes in the wake of heightened tensions in Ladakh over demands for statehood, constitutional safeguards under the Sixth Schedule, and environmental protections. The Centre has accused Wangchuk and other activists of derailing the dialogue process with “politically motivated” statements.

On Wednesday, the government claimed:

“The mob was incited by Wangchuk’s provocative statements. Certain politically motivated individuals were not happy with the progress in talks between the government and Ladakh groups and have been trying to sabotage the dialogue process.”

Critics React: Chilling Effect on Civil Society

While the government has defended the action as necessary to uphold the law, critics view the cancellation as a politically motivated move aimed at silencing dissent in the region. Civil society activists and some opposition leaders have warned that such action could escalate tensions in Ladakh and erode public trust in the ongoing dialogue.

One activist, requesting anonymity, said:

“Targeting Wangchuk and his NGO just a day after police firing sends a very chilling message. This will only worsen the trust deficit between the Centre and the people of Ladakh.”

Next Steps for SECMOL

With its FCRA registration now revoked, SECMOL can no longer receive foreign donations, significantly hampering its activities — many of which involve education, sustainability projects, and youth outreach. It remains unclear whether the organisation will challenge the cancellation in court.

Sonam Wangchuk has not yet issued a detailed response to the cancellation. However, earlier he had expressed concern that peaceful protests were being misrepresented and that Ladakh’s constitutional and environmental issues were being neglected.

The cancellation of SECMOL’s FCRA licence marks a turning point in the Ladakh statehood movement. As both sides dig in, the government’s emphasis on law and order, and Wangchuk’s push for constitutional safeguards, appear set for a prolonged standoff. Whether this development will cool tensions or inflame them further remains to be seen.