The government has accused the NGO of "direct interference ... in the internal affairs of the country and also of abetting communal disharmony in India". In a letter to the Union home ministry, the Gujarat government has asked for a probe into possible violations under Foreign Exchange Management Act by Setalvad's NGOs, Sabrang Trust and Citizens for Justice & Peace.
The Gujarat government and Setalvad are already embroiled in legal battles. While she has filed several cases against the state government functionaries including the former chief minister Narendra Modi regarding the 2002 riots, the state police has filed a case of embezzlement of funds against her.
The Ford Foundation has been accused of interfering with the judicial system, defaming the Indian military, and acting against the stated goal of promoting communal harmony. The state home ministry has also accused the funding agency of encouraging Setalvad's NGOs to advocate "a religion specific and Muslim supportive criminal code and also keep the 2002 riots incident alive".
Gujarat Minister of State for Home Rajni Patel on Wednesday accused Teesta Setalvad of misusing funds given to her NGO by the US based Ford Foundation and said a report of the same has been sent to the Central government.
"The money which was given to her has been spent to spread lies against the Gujarat government, tarnishing the image of India in international circles, and also to spread communal disharmony. All this information has been forwarded to the Central Home Ministry. Now it is up to the Central Government to take action," Patel said.