After Years of Allegations, Home Ministry Cancels FCRA License of Sonam Wangchuk’s NGO — What Lies Ahead for Ladakh?

Sixteen years after early allegations of foreign fund misuse, Sonam Wangchuk’s SECMOL loses its FCRA license. The CBI is probing further, and questions loom over whether the celebrated activist may face arrest.

For decades, Sonam Wangchuk has been one of Ladakh’s most prominent voices. Known internationally as an innovator, education reformer, and environmental activist, his work inspired countless young minds across India. Yet today, the man often hailed as the “engineer of Ladakh” finds himself in the middle of a storm.

The Ministry of Home Affairs (MHA) has cancelled the Foreign Contribution Regulation Act (FCRA) registration of the Students’ Educational and Cultural Movement of Ladakh (SECMOL), the NGO Wangchuk founded in 1988. The decision follows a preliminary inquiry by the Central Bureau of Investigation (CBI) into alleged violations of FCRA norms by SECMOL and the Himalayan Institute of Alternatives, Ladakh (HIAL).

The move has triggered heated debates. Supporters see it as a politically motivated crackdown on a vocal activist, while critics argue it is an overdue step to enforce accountability. Either way, the cancellation marks a decisive shift in Wangchuk’s long and complex relationship with the Indian state.

Looking Back: The Allegations of 2007

The first major controversy surrounding Sonam Wangchuk and foreign funding dates back to 2007, during the tenure of the Congress-led UPA government. At that time, reports suggested that his NGO had allegedly received and used foreign donations in ways that could destabilize Ladakh’s fragile political landscape.

However, despite the murmurs and political accusations, no formal action was ever taken. The allegations lingered in the background but did not prevent SECMOL from continuing its work in education reform, sustainable energy, and environmental awareness.

For the next decade, Wangchuk remained widely respected in civil society circles. He became globally recognized for innovations like the Ice Stupa project and earned awards including the Rolex Award for Enterprise.

2019: The Turning Point

The abrogation of Article 370 in August 2019 changed everything for Ladakh. With the region separated from Jammu & Kashmir and converted into a Union Territory, new political, social, and administrative challenges emerged.

It was at this point that Wangchuk transitioned from being primarily an innovator and educationist to a more active political voice. He began speaking out on:

  • Demand for statehood for Ladakh.
  • Constitutional safeguards under the Sixth Schedule to protect land, culture, and jobs.
  • Ecological concerns, warning that unregulated industrialisation and land acquisition could harm Ladakh’s fragile environment.
  • Youth employment, arguing that Ladakh’s unique needs were being overlooked in Delhi’s policy decisions.
  • His activism—fasts, marches, speeches, and social media campaigns—resonated deeply with Ladakhis, but it also drew the attention of central authorities.

The Recent Action: FCRA Cancellation

On September 25, 2025, the Ministry of Home Affairs announced that the FCRA license of SECMOL had been cancelled. This decision effectively bars the NGO from receiving foreign contributions, which have been an important source of funding for many of its educational and environmental projects.

Alongside SECMOL, the Himalayan Institute of Alternatives, Ladakh (HIAL)—another initiative associated with Wangchuk—has also come under scrutiny. The CBI has opened a preliminary inquiry into both institutions.

Key allegations include:

  • Unreported Foreign Contributions: SECMOL allegedly received funds from foreign sources without proper FCRA clearance.
  • Undeclared Accounts: Investigators claim there were bank accounts not reported to the government, which violates FCRA norms.
  • Misrouting of Funds: Domestic funds may have been diverted into FCRA-designated accounts.
  • Service Agreements with Foreign Entities: Certain collaborations labeled as “export of knowledge” were treated by authorities as foreign contributions, raising compliance questions.

Wangchuk’s Response

Wangchuk has rejected the notion of wrongdoing. According to him:

  • Many of the transactions under scrutiny were not “donations” but paid services, such as training programs for international organizations.
  • Taxes were duly paid on such earnings, making them legitimate business income rather than foreign contributions.
  • His NGOs have consistently worked transparently for the benefit of Ladakh’s youth and environment.

Supporters argue that the government’s move is designed to silence dissent, particularly at a time when Ladakh is witnessing intensifying protests for statehood and constitutional safeguards.

Why the Delay? The “Six Years Too Late” Debate

The question many are asking is: Why now?

If suspicions about foreign funding existed as far back as 2007, why did no government—Congress or BJP—take action until 2025?

One explanation is that 2019 onwards marked a new phase in Wangchuk’s activism. Once he began leading large-scale protests and challenging government policy in Ladakh, his profile shifted from educator to political actor. Critics argue that the government tolerated his activities until they became a potential political challenge.

For others, the delay reflects the slow pace of bureaucratic and investigative processes. Establishing evidence in cases of financial irregularities is complex, especially when NGOs operate multiple accounts, partnerships, and projects.

Either way, the cancellation now feels to some like “six years too late”, but also an inevitable step given the rising tensions in Ladakh.

What FCRA Cancellation Means

Under the Foreign Contribution Regulation Act, 2010, NGOs must:

  • Register and declare all bank accounts receiving foreign funds.
  • Use the money strictly for approved activities.
  • Submit detailed annual returns and audits.

When registration is cancelled:

  • The NGO cannot legally receive any more foreign contributions.
  • Its existing foreign-funded assets may be subject to government oversight.
  • It may face penalties for past violations.

For SECMOL, this means severe funding constraints. Its educational and environmental projects—which often attracted global interest—will now have to depend entirely on domestic resources.

Could Wangchuk Be Arrested?

The big question is whether Wangchuk himself faces imminent arrest.

At present:

  • The CBI is still in the preliminary inquiry stage.
  • No First Information Report (FIR) has been filed yet.
  • An arrest would require prima facie evidence of willful FCRA violations or other financial misconduct.

Legal experts suggest that unless investigators uncover clear proof of wrongdoing, an arrest may not be immediate. However, the fact that his NGOs are under active investigation makes it a possibility.

Political and Public Fallout

The cancellation of SECMOL’s FCRA registration has had significant ripple effects:

  1. Local Sentiment in Ladakh: Many Ladakhis view Wangchuk as their representative voice. Moves against him are likely to deepen the sense of alienation from Delhi.
  2. Civil Society Reaction: NGOs and activists across India see this as part of a larger pattern of government scrutiny on non-profits critical of policies.
  3. Political Debate: Opposition parties have already begun framing the issue as an example of suppressing dissent.
  4. International Attention: Given Wangchuk’s global reputation, the controversy could attract attention from international environmental and educational organizations.

Support and Opposition

Supporters of Government Action argue:

  • FCRA is about national security and transparency. NGOs must follow the rules like anyone else.
  • Foreign funding in sensitive border regions can have unintended consequences.
  • If rules were broken, cancellation is justified regardless of an NGO’s reputation.

Supporters of Wangchuk counter:

  • The timing suggests political motivation, as Wangchuk has become a leading critic of the government’s Ladakh policies.
  • What is being treated as foreign “contributions” were actually commercial collaborations.
  • His work in education and the environment has brought immense benefits to Ladakh.

The Broader Context: NGOs and FCRA in India

Wangchuk’s case is not isolated. In the last decade, the Indian government has cancelled the FCRA licenses of thousands of NGOs, including several high-profile ones. Authorities argue that stricter monitoring ensures transparency and national security.

However, critics say the law is often used selectively to curb organizations that are critical of government policies. The debate reflects a deeper tension between civil society freedom and state regulation.

What’s Next?

For Wangchuk and Ladakh, the road ahead is uncertain. Some possible scenarios include:

Legal Challenge: Wangchuk may move court to appeal the FCRA cancellation.

Protests: Local groups like the Leh Apex Body (LAB) and Kargil Democratic Alliance (KDA) have already expressed anger, suggesting larger demonstrations may follow.

Government Crackdown or Compromise: Depending on political calculations, the government may either intensify action or seek dialogue to reduce tensions.

Sonam Wangchuk’s journey from an educator and innovator to a political activist facing government scrutiny reflects the complex realities of Ladakh in today’s India. The cancellation of SECMOL’s FCRA license is not just a legal step—it is a turning point in the region’s ongoing struggle for autonomy, identity, and development.

Whether this leads to arrests, prolonged court battles, or a renewed dialogue between Ladakh and Delhi remains to be seen. For now, the story underscores the fragile balance between activism, governance, and accountability in one of India’s most strategically sensitive regions.

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