The environmental activist group was also served a notice by the government which asked why its registration should not be cancelled permanently.
The decision was taken by the Union Home Ministry after it was found that the NGO has "prejudicially affected the public interests and economic interests of the country in violation" of the Foreign Contribution Regulation Act.
The foreign fundings to Greenpeace India have been blocked by suspending the NGO's licence for 180 days, the Ministry said. In all, the NGO's seven bank acounts were frozen, it added.

The Indian arm of Greenpeace International had received Rs 53 crore over the last seven years, according to an official.
The Home Ministry in its order also said that licence of Greenpeace India will be cancelled permanently if the NGO fails to make a satisfactory presentation to the government.
Reacting to the move, Greenpeace India said it will not be "cowed" down by a "campaign against dissent" and is seeking legal counsel in the matter.
It termed the government action as a "smear" campaign and vowed to continue work towards clean air, water and inclusive development in India.
Samit Aich, Executive Director of Greenpeace India, said that the MHA's repeated moves to restrict the NGO's funding and the movement of its personnel were clear attempts to "silence criticism and dissent".
In a dossier on Greenpeace India, prepared after more than six month long investigation on the activities of the NGO, the Home Ministry said foreign contribution was used "to influence and lobby for the formation of government policies".

In its notice to the Greenpeace, the Home Ministry said it has been found that multiple transfers were made to multiple accounts including inter-account transfers from utilisation account without any intimation or permission of the government.
"..the association has under reported and repeatedly mentioned incorrect amount of foreign contribution received in violation of the FCRA. The most glaring example being foreign contribution opening balance for 2008-09, which was reported as NIL in auditor's certificate but was actually Rs 6.6 crore.

The Greenpeace India subsequently admitted the same and claimed it to be a typographical error, which is not tenable," it said.

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