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Complaint Filed Against ‘Digital Rights’ NGO SFLC Over Allegations of Foreign Funding And Financial Irregularities

sflc foreign funding complaint digital rights ngo

The Software Freedom Law Center, India (SFLC.in), a ‘digital rights’ organization, has come under scrutiny following a formal complaint raising concerns about its funding sources, legal operations, and involvement in politically sensitive matters.

SFLC’s office bearers, as per NGO Darpan records, include President Rahul De, and Executive Members Venkatesh Hariharan and Satish Babu.

The complaint filed by NGO watchdog, Legal Rights Protection Forum, has alleged that SFLC is not registered under the Foreign Contribution (Regulation) Act, 2010 (FCRA), and yet continues to receive significant funding from foreign sources, including U.S.-based organizations. Particular concern was expressed over donations from the Open Society Institute (OSI), affiliated with the Open Society Foundations (OSF), which has previously been placed on a watchlist by India’s Ministry of Home Affairs (MHA).

The complaint urges the MHA to initiate a detailed investigation into SFLC’s current FCRA compliance status, its foreign funding channels, and the use of those funds, particularly in activities that could influence Indian policy or public opinion.

Citing SFLC’s FY 2023-24 audit reports, the complaint notes that the organization declared ₹38 lakh in donations, with ₹28 lakh allocated as consultancy fees for 14 employees. The average compensation approximately ₹19,000 per month per employee, has raised suspicions of possible underreporting or alternative funding mechanisms. Authorities have been asked to examine SFLC’s financial records under the Income Tax Act and FCRA for potential discrepancies.

Questions have also been raised regarding Mishi Choudhary, a U.S. citizen and founder of SFLC, who has been involved in litigation in Indian courts. While she is reportedly enrolled with the Bar Council of Delhi, the complainant has requested the Ministry of Law and Justice to verify her compliance with the Advocates Act, 1961, which limits the practice of law in India by foreign nationals unless duly qualified.

SFLC has participated in various legal challenges involving contentious issues such as internet shutdowns in Jammu & Kashmir, the Citizenship Amendment Act protests, and the 2020–21 farmer protests. The organization also challenged the blocking of the Briar messaging platform, a petition that was dismissed by the Delhi High Court, which cited national security concerns.

The complaint argues that SFLC’s legal and advocacy work in such matters may align with foreign policy interests and thus potentially interfere with India’s internal affairs. It has called on the MHA to assess whether these actions breach laws relating to national security and public order.

Additionally, SFLC’s involvement in commentary on the ANI v. Wikipedia case has drawn attention due to an undisclosed familial connection. Ms. Mishi Choudhary’s brother, Mr. Kabir Darshan Choudhary, is a senior counsel at the Wikimedia Foundation. The complaint has urged authorities to examine whether this connection created a conflict of interest that could compromise the integrity of legal proceedings.

The complaint requests the government to investigate SFLC’s foreign funding and compliance with FCRA and Income Tax laws; examine the eligibility of Ms. Mishi Choudhary to practice law in India under the Advocates Act; scrutinize SFLC’s activities for potential violations of laws related to national security; review SFLC’s financial statements for accuracy and legality; probe any possible conflict of interest in the organization’s public positions and legal involvement.

The complaint has been submitted to the Ministry of Home Affairs and the Ministry of Law and Justice for further action. SFLC has not yet responded publicly to the allegations.

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