The Home ministry has placed Ford Foundation, an international funding organisation, on its watch list and said that its funds be routed with proper clearances. The ministry said it wanted to ensure that the funds were utilised for "bonafide welfare activities without compromising on concerns of national interest and security".



All funds coming from the US arm of the Foundation will have to be cleared by the Home ministry as per the relevant section of the Foreign Contribution Regulation Act. A letter from the ministry asked the Reserve Bank of India to ensure that any flow of fund from the organisation be brought to the ministry's notice.



Ministry sources said the step was taken after it was found that non-governmental organisations (NGOs) which have been receiving funds from Ford Foundation had not filed the mandatory documents, like balance sheets and annual reports. Over the last few months, the government had blocked millions of dollars of grant from the Ford Foundation to NGOs, sources said.



Earlier this month, the Gujarat government had asked the Home Ministry to take action against Ford Foundation, alleging that the US-based organisation was "interfering in the internal affairs" of the country and "abetting communal disharmony" through the NGO Sabrang Trust, run by social activist Teesta Setalvad.



In a statement, the Ford Foundation said it has "officially learned that the Ministry of Home Affairs is reviewing information related to their ongoing investigation of Sabrang Communications and Publishing Pvt Ltd".





The Foundation said it has not been directly contacted by the ministry, but added that it would "continue to respond fully to official queries". "We are confident in our work and compliance with the law and look forward to the outcome of this inquiry," it added.

NGOs and lobby groups have been on the government's radar since last year after a report by the Intelligence Bureau said they had been preventing economic growth by campaigning against power and mining projects, as well as genetically modified food.Earlier this year, the government barred Greenpeace India from receiving foreign funds, alleging it has "prejudicially affected the economic interest of the state".