NEW DELHI: Even as US-based charity Bloomberg Philanthropies is still being “watched” by the intelligence agencies for funding Indian NGOs engaged in anti-tobacco lobbying, three of its recipient NGOs have been denied renewal of registration under the Foreign Contributions Regulation Act (FCRA) or had their registration cancelled over the past year. The reason for stripping these NGOs — Voluntary Health Association of India (VHAI), Assam; VHAI , Karnataka and Institute of Public Health, Karnataka — of FCRA registration being that the Act does not allow them to receive foreign funds for activities other than their stated purpose - which includes charitable activities in the social, cultural, religious, educational or economic field.“Lobbying is a commercial activity and should be carried out by for-profit companies under the Companies Act and should not be tax exempt as most FCRA-registered NGOs are,” states the IB note on Bloomberg India ’s initiative under which it funds several FCRA-registered NGOs to run its three-phase campaign to target cigarettes, beedis and smokeless tobacco by lobbying for raising of pictorial health warnings on their packaging and higher taxes etc.While IB had identified five Indian NGOs that received funds through US NGOs Campaign for Tobacoo-Free Kids and Tobacco Free Kids Action Fund, both funded by Bloomberg, two NGOs — VHAI, Delhi and VHAI, Rajasthan — were spared action under FCRA.As per IB note on Bloomberg’s anti-smoking campaign, prepared sometime in June 2016, the charity run by US billionaire Michael Bloomberg successfully lobbied for 85% pictorial warnings on cigarette packs in India, contrary to recommendations of a statutory body. The parliamentary committee on subordinate legislation, in its 22nd report tabled in the 10th Lok Sabha, had recommended a maximum 50% pictorial warning and cautioned that a higher percentage would lead to “flooding of illicit cigarettes” in the country. Also, it was argued that the 85% rule would increase the demand for smuggled foreign brands, which do not carry any pictorial warnings.Incidentally, WHO Framework Convention on Tobacco Control recommends a pictorial warning of 50%. Yet, US remains a non-party to the convention, with the result that cigarette packs manufactured there do not need to carry any pictorial warnings. “Bloomberg does not run much of a campaign in US,” the intelligence report is said to have underlined.TOI sought Bloomberg’s version by sending queries to its official email address on Thursday. However, there was no response despite repeated reminders.The 85% pictorial warning rule was implemented last year as per a Supreme Court order. IB maintains that Bloomberg Initiative played a big role in it by using the services of lawyers, including Prashant Bhushan and Anand Grover (of Lawyers Collective run by Indira Jaising) to appear against the government of India.The IB report states that the higher pictorial health warning on cigarette packs in India is only first phase of Bloomberg’s anti-tobacco campaign in India. “It is now working on second phase, which will target production, marketing and consumption of beedis..the third phase will focus on smokeless tobacco such as gutka, khaini, etc,” it says.IB report says restrictions on tobacco use in India would encourage consumption of more injurious toxicants like alcohol and narcotics. Also, as per parliamentary committee on subordinate legislation, a crackdown on tobacco would hit farmers as 2.6 crore farmers and farm labour depend on it. Ministry of health says 0.8-0.9 crore workes depend on bidi/tendu leaf/cigarette industry.“Foreign corporate interests making ‘foreign contributions’ to FCRA-registered NGOs for purposes of lobbying against an established economic activity raises multiple economic and social concerns. This includes adverse economic impact on 3.5 crore persons of the forced closure of tobacco-related farming/industry,” the IB note had warned.