The license granted to NGO Public Health Foundation of India (PHFI) under the Foreign Contribution (Regulation) Act (FCRA) 2010 has been cancelled by the Ministry of Home Affairs. PHFI was associated with the Bill & Melinda Gates Foundation (BMGF), which was one of its biggest donors. The cancellation of its license implies that PHFI will not be able get funds from foreign donors. The Home Ministry said that the license has been canceled because there has been misuse of funds received from foreign donors. PHFI is accused of diverting funds received for health research.
Meanwhile, PHFI said that it is aware of the objection raised by the Home Ministry and is working to resolve the issues. PHFI said that the issues relate to its financial reports and utilizations of funds for projects related to tobacco and HIV/AIDS. PHFI has provided the necessary clarification and information to the Home Ministry and has also submitted supporting documents. PHFI President Sreenath Reddy said that the operations of the NGO are compliant with the rules and regulations of the country. PHFI is hopeful that the issues will be resolved soon.