Infosys clarifies on the show cause notice for violation of norms

The Home Ministry has cancelled the registration of Bengaluru-based NGO Infosys Foundation for alleged violation of norms in receiving foreign grants, officials said on Monday. Now, the company has issued a clarification on the show cause notice to the company for failing to submit annual income and expenditure statement.

The statement reads, ''Infosys Foundation would like to clarify that it has not violated any FCRA norms and was de-registered from FCRA following its request to the Ministry. The Foundation was registered under the FCRA Act in January 2016. In May 2016, the Government amended the FCRA Act in the Finance Bill with retrospective effect from 2010 as a result of which Foundation no longer fell under the purview of the FCRA Act''.

''The Foundation thereafter applied for its de-registration from FCRA with an additional request to cancel the FCRA registration in June 2016, and received acknowledgement from the FCRA wing in the same month. The Foundation has submitted its annual returns for FY16, FY17 and FY18, though it did not fall under the purview of Act following its amendment. Additionally, the Foundation has also submitted necessary paperwork to the Government in July 2018, to showcase that the Foundation has not received any foreign funding. The Foundation has not received any notice to file returns pertaining to FCRA after April 2018''.

All non-government organisations (NGOs) are mandatorily required to be registered under the Foreign Contribution (Regulation) Act or FCRA to receive foreign funding.

The Home Ministry had last year served show cause notice to Infosys Foundation for failing to submit annual income and expenditure statement on foreign funding for up to six years despite repeated reminders, officials said.

Established in 1996, Infosys Foundation supports projects in education, rural development, health care, arts and culture, and destitute care. According to the foundation’s website, its mission is to work in remote regions of India. Sudha Murthy is the chairperson of Infosys Foundation.

(With inputs from PTI )