While Ladakhi activist Sonam Wangchuk has been accused of inciting the violence that broke out in Leh yesterday, it also has been revealed that he and his institutions are under CBI investigation for alleged violation of foreign funding rules. As per reports, the central probe agency has started a preliminary enquiry (PE) over allegations of FCRA violations by Wangchuk, and the Himalayan Institute of Alternatives Ladakh (HIAL).
The PE was started around two months ago based on a reference from the ministry of home affairs (MHA), and no formal FIR has been filed yet. CBI is currently examining financial statements of HIAL and Wangchuk.
The activist has claimed that there is no FCRA violation as he and his institutions have not received any donation from foreign sources. He claimed that foreign money received by HIAL are for ‘export of knowledge’, and not donations.
However, sources familiar with the matter say that there are serious allegations of financial irregularities and violations linked to him, which raise critical questions about his credibility and intentions. As per government sources, serious financial irregularities had been detected in the functioning of HIAL, including repeat violations of the Foreign Contribution Regulation Act.
As per the source, HIAL received local donations into its FCRA account, which is a clear violation of Section 17 of the FCRA 2010. Additionally, HIAL had received foreign remittances worth aroung ₹1.5 crore even before applying for FCRA registration, which goes against Section 11 of the same Act.
For the financial years 2020-21 and 2021-22, HIAL declared that it had zero foreign earnings. However, it did receive foreign remittances during this period, which amounts to a violation of both the Companies Act and Section 467 of the Indian Penal Code. It appears that Wangchuk is claiming this inflow as proceeds for ‘export for knowledge’.
Another serious allegation is that in 2023, a new account was created under a profitable company named Sheshyon Innovation Private Limited, with Sonam Wangchuk and Geetanjali JB as its directors. The purpose appeared to be to absorb the excess reserve funds that had accumulated over the years in HIAL’s balance sheet, even though there was no actual ground-level work to justify the accumulation of these funds.
Allegedly, Sheshyon has 3 accounts out of which 2 are not declared. The company reported a turnover of ₹9.85 Crores for the Assessment Year 2024-25, with just 1.14% net profit. The records also allegedly show large transfer of funds from Himalayan Institutes of Alternatives Ladakh to the private firm Sheshyon Innovation Private Limited. It has been alleged that ₹6.5 crore has been transferred from HIAL to Sheshyon Innovations Private Limited.
It is also been alleged that foreign funds were received in Sonam Wangchuk’s personal and joint accounts. If true, this is a direct violation of the FCRA 2010. During the period from 2021 to March 2024, he also allegedly transferred crores of rupees abroad. This raises serious concerns about possible money laundering if the allegation is true, especially since these outward foreign remittances were made to unknown entities, while he continued to receive foreign funds in his personal accounts.
The Donations Contribution received by Himalayan Institute of Alternatives Ladakh also has increased significantly from ₹ 6 Crores during the A.Y. 2023-24 to more than 15 Crores during the A.Y. 2024-25.
Moreover, HIAL allegedly has 7 accounts, out of which 04 are not declared by them. Further, they have received Foreign Remittances of more than ₹1.5 crore without FCRA registration.
Students Educational and Culture Movement of Ladakh, another organisation set up by Sonam Wangchuk, allegedly has 9 accounts, out of which 6 are not declared.
Sonam Wangchuk himself has 9 personal bank accounts, of which 8 are allegedly not declared. It has been alleged that some of his undeclared bank accounts received huge foreign remittances. He received foreign funds of ₹ 1.68 Crores from 2018 to 2024 in different accounts. He has also sent ₹2.3 crores abroad from 2021 to 2024.
It is also being claimed that Sonam Wangchuk receives huge funds under CSR from various corporate entities including central government PSUs. This is despite the fact that he criticises the corporate sector.
