The Union Ministry of Home Affairs cancelled the Foreign Contribution (Regulation) Act (FCRA) licence of Sonam Wangchuk’s Students Educational and Cultural Movement of Ladakh (SECMOL) on Thursday, citing various alleged violations of the Act.

The cancellation, which came just hours after the reported police firing killed four protestors during violent statehood demonstrations in Leh, has intensified debate over the government’s handling of both financial oversight and civil unrest in Ladakh.

Officials have directly linked the protests and subsequent violence to Wangchuk’s “provocative speeches” referencing Arab Spring and other global youth movements. The Central Bureau of Investigation (CBI) and income tax authorities have initiated parallel inquiries into SECMOL’s finances and donations over the last several years.

Centre Cancels Wangchuk’s NGO Licence over Alleged FCRA Violations

The government’s decision sprung from a preliminary probe by CBI, reportedly confirming several irregularities in SECMOL’s financial records. Key allegations include the deposit of locally generated funds into FCRA-designated accounts, strictly prohibited under Section 17 of the Act, and diversion of foreign contributions for activities such as studies on national sovereignty, which the Ministry deemed contrary to national interest.

Sources further claimed that Wangchuk’s other organisation, Himalayan Institute of Alternatives Ladakh (HIAL), also received foreign remittances exceeding ₹1.5 crore without proper FCRA registration, while Rs 6.5 crore was allegedly moved to his private firm, Sheshyon Innovation.

Officials revealed Wangchuk operated nine personal bank accounts, most of which remain undeclared. Similar irregularities were cited with multiple bank accounts linked to HIAL, SECMOL, and Sheshyon Innovation. Wangchuk is said to have received significant CSR funding from both public and private corporations, despite publicly criticising such entities.

Timeline: From Demonstrations to Licence Cancellation

The action against SECMOL reportedly began with a show-cause notice issued on August 20, 2025, after Wangchuk deposited Rs 3.5 lakh into SECMOL’s FCRA account in 2021-22, an amount SECMOL initially explained as proceeds from a bus sale in 2015, but later shown as foreign donation in statutory filings.

Local funds worth Rs 54,600 were also found deposited into the FCRA account by three individuals, which the NGO said was a mistaken transaction. The Ministry reported that Rs 4.9 lakh in foreign donations were accepted for studies covering topics classified as impermissible under the FCRA guidelines, including sovereignty.

The cancellation followed a surge in unrest in Leh, where police responded with lethal force to protestors demanding Ladakh’s statehood and constitutional protections. The Ministry attributes the violence to Wangchuk’s rhetorical support for global movements and calls for youth mobilisation, which allegedly incited tensions on the ground.

The Government’s Response and Wangchuk’s Rebuttals

Officials emphasised the gravity of the alleged violations and stressed the need for strict enforcement to prevent disruption of law and order via foreign funding. “The organisation has been found to be in violation of provisions of the FCRA, prompting immediate action,” an officer stated.

CBI and income tax investigations are actively probing further financial irregularities, including Rs 2.3 crore sent from Wangchuk’s personal accounts abroad between 2021 and 2024, and Rs 1.68 crore received in different accounts from 2018 to 2024.

Wangchuk, meanwhile, has denied inciting violence, instead alleging that authorities are intent on building a case for his arrest and suppressing democratic demands from Ladakh’s civil society.

The Logical Indian’s Perspective

This episode presents a complex crossroads for Ladakh, where legitimate claims for political autonomy now intersect with strict regulatory oversight and allegations of financial misconduct.

The Logical Indian urges empathy for all affected communities and advocates for transparent, constructive dialogue between citizens and the state. Maintaining peace, respecting lawful protest, and ensuring financial accountability are vital to the region’s stability and progress.