A day after violent protests over demands for statehood in Ladakh left four people dead, the Union Ministry of Home Affairs (MHA) has cancelled the Foreign Contribution (Regulation) Act (FCRA) registration of the ‘Students Educational and Cultural Movement of Ladakh’ (SECMOL), an NGO founded by climate activist Sonam Wangchuk.
The government, which had accused Wangchuk of inciting the violence through “provocative statements,” issued the cancellation order on September 25, 2025. The order details several financial and procedural violations, culminating in the immediate termination of the NGO’s ability to receive foreign funds.
The action followed a Show Cause Notice issued to SECMOL on August 20, 2025, to which the association replied on September 19. After examining the NGO’s response, the ministry concluded that multiple violations were established.
Ministry findings on financial irregularities and improper disclosure of funds
The MHA order outlines specific instances of financial mismanagement and non-compliance with the FCRA.
The ministry pointed to a sum of Rs. 3.5 lakh deposited by Sonam Wangchuk into SECMOL’s FCRA account during the 2021-22 financial year, terming it a violation of Section 17 of the Act.
SECMOL, in its defence, stated the amount was Rs. 3,35,000 and represented the “sale proceeds of the old bus procured on 14.07.2015 out of FCRA’s fund only.” The organisation argued that proceeds from assets bought with foreign funds must be deposited back into the FCRA account.
However, the ministry found this reply to be “not tenable.” The order states that while the amount was declared in the annual returns as a “foreign Donation” from Sonam Wangchuk, the credit entry was not found in the FCRA bank account. The ministry concluded, “It seems that the amount has been received in cash in violation of section 17 of the Act which is not properly disclosed by the association in its reply.”
It further noted that the failure to reflect this transaction in the FCRA account also violates Section 18 of the Act.
MHA cancels the FCRA license of Activist Sonam Wangchuk’s NGO. pic.twitter.com/OKK6NlShlo
— Press Trust of India (@PTI_News) September 25, 2025
Mixing local and foreign funds
Another violation cited was the deposit of Rs. 54,600 in local funds into the FCRA account during 2020-21 by three individuals. SECMOL admitted the error, explaining that the money came from volunteers for their food and accommodation and was “mistakenly transferred into our FCRA account instead of the local account,” despite clear instructions on its website. The MHA order noted,
“As admitted by the association, local fund were credited into FCRA account in violation of section 17 of the Act.”
Ministry alleges misuse of funds for ‘Sovereignty’ study; NGO clarifies donation was for ‘Food Security’ awareness.
Perhaps the most serious violation detailed in the order relates to a grant of ₹4,93,205 received from a Swedish donor, Framtidsjorden, during the 2021-22 financial year.
SECMOL clarified that the funds were for an educational program to create awareness among youth on issues like migration, climate change, food security, and “Sovereignty.”
The organisation in its reply stated that “we received Rs. 4,93,205/- from Framtidsjorden for educational program for youth under FE project for creating awareness among youth on issues such migration, climate change, global warming, food security and Sovereignty and organic farming through different workshops and trainings. The funds were utilised strictly in line with the organisation’s objectives and for the specifics purposes for which they were allocated. Hence, all these activities were educational and there was no violation.”
Page 3 of the Ministry Order dated September 25, 2025
The ministry seized on this specific point in its findings. The order states that the association admitted the donation was for a study on the “Sovereignty of the country” and that the funds were used in line with the donor’s objectives. The ministry unequivocally concluded that this activity was illegal, stating,
“The Foreign Contribution cannot be accepted for study on Sovereignty of the nation. This act of the association is against the national interest of the Country in violation of section 12(4)(f)(i) of the Act.”
Concluding its findings, the MHA stated that in view of the violations, the competent authority was cancelling SECMOL’s FCRA registration with immediate effect.
Background: unrest and protests in Leh
The cancellation comes in the immediate aftermath of significant unrest in Leh. On September 24, a large protest, primarily led by youth, turned violent. The demonstration was organised in solidarity with Sonam Wangchuk, who had been on a hunger strike to press for longstanding demands, including statehood for Ladakh and its inclusion under the Sixth Schedule of the Constitution for safeguarding land, culture, and employment.
Protestors reportedly vandalised property and torched vehicles, leading to clashes with security forces who responded with tear gas and firing. However, people died and dozens were injured in the violence. The central government claimed the “mob was incited by Shri Sonam Wangchuk through his provocative statements,” an allegation Wangchuk has denied, stating he has always appealed for peace.
Following the violence, the local administration-imposed restrictions on public gatherings and internet services. The next round of talks between Ladakhi representatives and the MHA is scheduled for October 6.
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