The ministry of home affairs has cancelled the Foreign Contribution Regulation Act registration of New Delhi-based think tank Centre for Policy Research, The Hindu reported.

This comes nearly a year after the organisation’s FCRA licence was suspended in February last year for using its foreign funds in violation of its “objects of the trust”. The suspension had resulted in its foreign funds worth over Rs 22 crore being “under freeze”. 

The think tank received the cancellation order on January 10 and is weighing options to “seek justice”. The MHA website cited CPR’s reports on “current affairs programmes” as a violation of FCRA and one of the reasons behind the recent cancellation.

In a statement issued this afternoon, CPR said the basis of the decision was “incomprehensible and disproportionate” and reiterated that it was in “complete compliance with the law”.

“We remain steadfast in our belief that this matter will be resolved in line with constitutional values and guarantees,” it said.

Newslaundry had earlier reported that the think tank’s tax exemptions had also been revoked, and it had downsized its staff by 75 percent and several employees had taken “massive pay cuts” amid a “serious financial crisis”. 

A key allegation in the income tax notice against CPR was that it “diverted” its funds for activism and environmental litigation in violation of its “objects of the trust”.

Read all the details here.