NEW DELHI: The home ministry has taken a decision that Teesta Setalvad ’s NGO , Sabrang Trust, should be barred from receiving foreign donations. The process of cancelling Sabrang’s licence under Foreign Contribution (Regulation) Act ( FCRA ) has started.A home ministry spokesperson told ET that the cancellation “is under process”. Setalvad’s Sabrang had been active in pursuing cases related to the 2002 Gujarat riots. She had also been a vocal critic of Narendra Modi government in Gujarat. On September 9 last year, the National Democratic Alliance government suspended Sabrang’s licence, citing multiple violations of FCRA rules, including misuse of funds for personal benefit of trustees.The suspension was for 180 days, and ended on March 10. Sabrang had, as required, filed a reply to the government’s notice in October 2015. The reply had argued that the government’s reasons for suspension were arbitrary and that Sabrang is in a position to explain all its donations.However, senior home ministry officials said the reply was found to be “inadequate” and that was the basis of the decision to cancel the FCRA licence of Setalvad’s non-governmental organisation. Setalvad did not reply to ET’s emails or respond to calls. Her spouse and a Sabrang trustee, Ja-ved Anand, told ET: “We have submitted our replies before the home ministry within the stipulated time period.”A person close to Setalvad and Anand said Sabrang will legally challenge a cancellation order. This person did not wish to be identified. In its suspension notice, the ministry had said that in 2010-11 and 2011-12, Sabrang had spent between 55% and 65% of foreign funds it received for “administrative expenses”. FCRA rules state that if an NGO’s administrative expenses exceed 50% of total foreign donations, the organisation needs a ministry approval.The home ministry also said Sabrang had transferred Rs 50 lakh to an entity called Sabrang Communication & Publishing Private Ltd, which has Setalvad and Anand as directors. This transfer, the suspension order stated, “seems to be used for personal gain”. The order also said Sabrang had transferred donation money to various bank accounts for settling credit card dues of Setalvad and Anand.