Greenpeace was specifically targeted because the IB report had charged it with orchestrating "massive efforts to take down India’s coal-fired power projects and mining activity."

Following an Intelligence Bureau (IB) report that alleged foreign-funded NGOs were creating obstacles to India’s economic growth, the Home Ministry has clamped down on Greenpeace, an international campaign group present in 40 countries.

In a letter dated 13th June, the Ministry has directed the Reserve Bank of India that all foreign contributions originating from Greenpeace International and Climate Works Foundation — two principal international contributors to Greenpeace India Society — must be kept on hold until individual clearances are obtained from the Ministry for each transaction.

The RBI has been asked to direct banks to this effect. The central bank has also been asked to report to the government if any government department or institution is receiving such funds.

Greenpeace was specifically targeted because the IB report had charged it with orchestrating “massive efforts to take down India’s coal-fired power projects and mining activity.”

According to the report, public protests in Madhya Pradesh’s Singrauli region — which produces 15,000 MW energy — were being engineered by Greenpeace, “actively aided and led by foreign activists.”

In its directive to the chief general manager, Department of Banking Operations and Development, RBI, the Ministry has invoked Section 46 of the Foreign Contributions (Regulations) Act, 2010, that says the “Central government may give such directions as it may deem necessary” for execution of the provisions of the Act.

The new directive will effectively bar the NGO from accepting foreign money, as it will require seeking case-by-case clearance for each contribution.