What started as a Seed of Participatory Governance quickly Turned into The Den of Corruption, PCRF is at the top of Kejriwal's Corruption List

Key Points:

The Public Cause Research Foundation (PCRF) was established on December 19, 2006, by Arvind Kejriwal (Indian politician, activist, and former Chief Minister of Delhi), Manish Sisodia (Indian politician, journalist, and former Education Minister of Delhi), and Abhinandan Sekhri (writer, producer, and journalist based in Delhi, India), with a mission to promote just, transparent, accountable, and participatory governance.

Kejriwal, a Ramon Magsaysay Award winner for his activism under the Right to Information (RTI) Act, donated his award prize money as seed funding for PCRF, aiming to empower citizens and ensure that real power rests with the common people.

Registered under Sections 80G and 12A of the Income Tax Act, PCRF focused on using the RTI Act to expose corruption in government departments such as the Income Tax Department, Municipal Corporation of Delhi, Public Distribution System, and Delhi Electricity Board. The foundation also played a pivotal role in the Jan Lokpal campaign, advocating for a strong anti-corruption ombudsman to foster direct democracy.

PCRF’s early work included collaboration with the Hindustan Times in 2009 and 2010 to recognize individuals protecting the right to information through the National RTI Awards. Prominent figures such as N.R. Narayana Murthy, Fali S. Nariman, and J.M. Lyngdoh served on the jury, adding to PCRF’s credibility. The organization collected, researched, analyzed, and disseminated governance-related information, positioning itself as a watchdog for policy implementation and law enforcement.

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While specific financial records for 2006–07 and 2007–08 are not publicly available, PCRF’s funding initially relied on Kejriwal’s Magsaysay Award prize money and subsequent donations from individuals and corporates. By 2010–11, PCRF’s balance sheet recorded ₹96.5 lakh in donations from prominent business figures and organizations, including ₹25 lakh each from N.R. Narayana Murthy and the Tata Social Welfare Trust, ₹25 lakh from the Kasturi Trust, ₹3 lakh from the Eicher Goodearth Trust, and smaller contributions from Enam Securities, JM Financial Foundation, and others.

These funds supported RTI initiatives and the Jan Lokpal campaign, with some earmarked for specific purposes like the RTI Awards. However, the lack of detailed financial statements for the early years (2006–08) contributed to later concerns about transparency.

The Controversy: What Went Wrong?

PCRF’s reputation as a transparent, anti-corruption organization faced scrutiny as its activities intertwined with the India Against Corruption (IAC) movement and the formation of the Aam Aadmi Party (AAP) in 2012. The foundation served as the secretariat for IAC, managing significant donations collected during the 2011 Ramlila Maidan agitation led by Anna Hazare. Allegations emerged that funds donated for IAC were diverted to PCRF, raising questions about accountability. By 2014, PCRF was no longer listed as an NGO, and its last published accounts were for 2011–12, fueling suspicions of mismanagement. The absence of updated financial records and the discontinuation of the PCRF website further eroded public trust.

Critics, including former associates, alleged that PCRF lacked transparency in handling donations. Swami Agnivesh, a former IAC member, claimed in 2011 that over Rs 80 lakh donated for the anti-corporate IAC movement was deposited into PCRF, a trust controlled by Kejriwal, without including key IAC figures like Anna Hazare or Justice Santosh Hegde as trustees. Agnivesh stated, “All the donations which were made for the India Against Corruption (IAC) were diverted to Public Cause Research Foundation run by Kejriwal,” and noted delays in opening a dedicated IAC bank account. He emphasized on transparency, saying, “India Against Corruption campaign is about transparency. When we are fighting against corruption, then transparency is the main and important part of it, accountability is the second part of it.”

The shift of PCRF’s focus to the Jan Lokpal campaign, particularly after 2011, led to tensions with corporate donors. N.R. Narayana Murthy, who donated Rs 25 lakh annually from 2008 to 2011 for RTI Awards, approved redirecting his 2011 donation to Jan Lokpal efforts but ceased funding in 2012 when PCRF turned political.

Murthy clarified, “Kejriwal wrote to me in May 2011 that the secretariat of the Foundation was busy drafting a Jan Lokpal Bill and that they would not be able to have the awards in 2011. He also asked me whether it was OK to use this amount of Rs 25 lakhs towards the secretarial expenses of the Jan Lokpal Bill effort. As one who believed that the country needed a moderate but effective Lokpal Bill, I agreed to his request. However, when Kejriwal approached me in September 2012 asking for financial assistance, I declined. Hence, I have not financially supported Kejriwal’s political activities.” Similarly, Tata Social Welfare Trust withdrew support when funds were redirected from RTI Awards to the Lokpal movement.

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The “No List, No Donation” Movement and Munish Raizada’s Role

Dr. Munish Kumar Raizada, a neonatologist based in Chicago and a former prominent member of the Aam Aadmi Party (AAP), launched a bold campaign titled “Chanda Band Satyagraha” (Stop Donations Movement) in December 2016, marking a turning point in the public perception of AAP and its leader Arvind Kejriwal.

Dr. Raizada, who joined AAP in 2012 and served as co-convener of its NRI cell, was suspended in 2015 after he publicly criticized Kejriwal’s decision to support Lalu Prasad Yadav—an act he viewed as compromising the party’s anti-corruption stance. Disillusioned by what he saw as a betrayal of the ideals of the India Against Corruption (IAC) movement, Raizada accused AAP of deviating from its founding principles of honesty, public accountability, and financial transparency.

AAP had risen to prominence on the back of a powerful promise: to run a political party that would be funded by the common man, not by corporations or vested interests. The party vowed to publicly disclose all donations, listing every donor on its official website. This commitment gave hope to many citizens who saw AAP as a revolutionary force in Indian politics.

However, by mid-2016, that promise began to fade. The donor list was taken down from the AAP website in July, and for over six months the page displayed a placeholder message: “Under Construction. New Version coming soon.” Despite repeated public demands, the list remained hidden.

In response, Dr. Raizada wrote an open letter to the party on 26 November 2016,  demanding the immediate publication of the donor list, giving them a deadline of one week. When AAP failed to comply, he launched the Chanda Band Satyagraha, urging citizens to stop donating to the party until it reinstated full transparency in its financial dealings. He also launched a website, encapsulating the campaign’s central message: “No Transparency, No Donations."

Transparency: Pardarshita 

In the documentary series Transparency: Pardarshita by Dr. Munish Kumar Raizada released in 2020, the filmmaker investigates the financial opacity and ideological shift within the Aam Aadmi Party (AAP) and its affiliated body, the Public Cause Research Foundation (PCRF). Through a series of in-depth interviews with former India Against Corruption (IAC) activists, ex-AAP members, and other insiders, Raizada explores allegations of mismanagement and lack of transparency in the party’s fundraising practices. Several former associates expressed deep distrust regarding the handling of funds by PCRF, raising questions about the very ideals on which AAP was founded.

Raizada made multiple attempts to interview Arvind Kejriwal, the face of AAP and a former anti-corruption crusader, but was unsuccessful. This absence became symbolic of the party's retreat from public accountability.

Transparency : Pardarshita reveals how the public’s trust in Kejriwal—once celebrated as a symbol of clean politics—was gradually eroded, as the party he led strayed from its foundational promises of transparency, honesty, and people-centric governance.

Shivendra Chauhan, Co-founder of IAC Mumbai, remarked to Raizada, “When the India Against Corruption (IAC) movement began, there was no official entity—no registered body, NGO, or formal organisation. But if there’s no registered body, whose hands will the donations go into? And how would the expenses of the movement be managed? So, we decided that Arvind Kejriwal’s NGO, PCRF, would serve as the secretariat of the movement, as it already had some staff and infrastructure. A large amount of money was collected—people supported the movement mentally, physically, and financially, donating generously. All the money went to Arvind and Manish. Today, PCRF no longer exists. Its website has been taken down. Even the India Against Corruption website has disappeared. There is no transparency or public account of where the donations went.” He said “jisko kehte hain na party banne se pehle ghotala (we call it a scam even before a political party was formed).”

Mufti Shamoon Qasmi, a former IAC Core Team Member from Bijnor, criticized Kejriwal’s control over funds in the series: “Arvind Kejriwal deposited the donation money into his PCRF account, which was completely against the principles of transparency. To ensure transparency, I suggested that since there was no official account in the name of India Against Corruption (IAC), we could route the funds through Anna Hazare’s organization, Bhrashtachar Virodhi Jan Andolan. But this proposal was rejected—because Kejriwal wanted complete control over everything. He engaged in corruption at that point, and everyone involved was complicit. Prashant Bhushan and Anna Hazare did not want the money in their accounts. Then Kejriwal closed his eyes for a moment, opened them, and said, ‘We can make Kiran Bedi and Prashant Bhushan the trustees of my trust.’ Now, whether they were ever officially made trustees or not remains unclear. But at that time, he cleverly diverted the issue and moved on.”

Shazia Ilmi, a former AAP leader from Delhi, highlighted the risks of donation-driven movements: “The PCRF staff — the same people — are now well-placed in Arvind Kejriwal’s government.”

Kapil Mishra, a long-time associate of Kejriwal and former AAP minister, reflected on AAP’s broken promises in Trasnsparency : Pardarshita: “After the Aam Aadmi Party came to power, the only headlines were about its leaders leaving — Yogendra Yadav, Prashant Bhushan, and many others. While prominent names were exiting, the few who joined, like Sushil Gupta, raised serious questions about the party’s direction. Just look at who is leaving and who is joining — the contrast speaks volumes. We failed on two major promises: decentralization of power and fighting corruption. Instead, we did the exact opposite after forming the government. The very pillars on which the party was built collapsed under its own weight of lies and hypocrisy.”

The web series also includes an interview with Kiran Bedi, Lieutenant Governor of Puducherry and former PCRF trustee, who expressed scepticism about the movement’s legacy: “I don’t think a movement like that will ever gain the public’s trust again, not after what the AAP did. People will always question their motives — whether they truly want change or just want to use the public for power.”

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Political and Corporate Responses

In defence, Manish Sisodia, a PCRF trustee and AAP leader, claimed transparency in 2011: Our accounts are already on the website. We have conducted a special audit for the last six months and by the month end we are putting the details on the website," He also justified corporate donations, stating, “Some of the corporate leaders like Narayana Murthy have actively supported us. He had some good ideas and took active interest besides his financial contribution and was also a jury member on our RTI awards.” Prashant Bhushan, another trustee, defended corporate funding: “Any corporate is free to give donations to us. When they donated in the past, we used it for anti-corruption work and not for political activities. It started only now,”

However, allegations persisted. In 2011, Congress leader Digvijaya Singh questioned the sources of donations to India Against Corruption (IAC), and in 2016, Captain Amarinder Singh alleged that Parivartan—PCRF’s predecessor—had received funding from the CIA-linked Ford Foundation, a claim the Aam Aadmi Party (AAP) dismissed as politically motivated. In 2024, the Enforcement Directorate alleged that AAP, through its connection with PCRF’s leadership, received ₹7.08 crore in foreign funds between 2014 and 2022, in violation of the Foreign Contribution Regulation Act (FCRA), the Representation of the People Act (RPA), and the Indian Penal Code (IPC), further raising concerns about transparency.

PCRF’s transition from a respected NGO to a lightning rod for controversy underscores the challenges of maintaining transparency in donation-driven movements. The Chanda Bandh Satyagraha highlighted public demand for accountability, with Raizada and others calling out AAP’s failure to uphold its promise of disclosing every rupee. The absence of PCRF’s financial records post-2012, coupled with the dissolution of its NGO status, left a void of trust. As Kiran Bedi noted, the public’s skepticism about such movements endures, raising questions about whether noble intentions can survive the complexities of political ambition. [Rh/VP]

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