India must stop its "witch hunt" against civil society groups under the pretext of tackling money laundering or terrorism financing, Amnesty International has said following a report by a global money laundering watchdog.
Rights organisations and news outlets have long complained of harassment under Prime Minister Narendra Modi's Hindu-nationalist administration, a charge it has denied.
In the last decade, India has cancelled the licences of thousands of non-governmental organisations using the Foreign Contribution Regulation Act (FCRA).
Charities and non-profit firms need to register under FCRA to receive money from abroad.
But critics say Modi's government has sought to pressure rights groups by heavily scrutinizing their finances and clamping down on foreign funding.
Amnesty said the Paris-based Financial Action Task Force (FATF) had rapped the Indian government for its "partial compliance" with measures to protect civil society activities in its report released on Thursday.
The 40-member FATF, to which India has belonged since 2010, is mandated to tackle global money laundering and terrorist financing.
"The Indian government must take seriously the priority actions recommended by the FATF report.... to stop the witch-hunt under India's anti-terror and money-laundering laws of non-profit organizations, human rights defenders and activists," Amnesty International India chair Aakar Patel said in a statement Thursday.
The FATF report noted "significant delays in prosecutions" in India under its money laundering and anti-terrorism laws, saying they resulted in a "high number of pending cases and accused awaiting trial".
In 2020, Amnesty International had to suspend its Indian operations after its bank accounts were frozen.
The Indian government defended its move, accusing Amnesty of "illegal practices" involving the transfer of "large amounts of money" from Amnesty UK to India.
Journalists critical of the government also complain of increased harassment, both on social media -- where Modi's ruling party has a powerful presence -- and in person.