New Delhi: Iran will use the donations collected by its embassy in India amid the war to procure medicines locally (in India itself) as the money cannot be transferred to Tehran through the regular diplomatic process, ThePrint has learnt.
Sources in the know said that even gold and jewellery collected in various parts of India, including Kashmir, must be deposited in local banks and monetised, as such items cannot be sent to Iran even via diplomatic channels like the pouch.
Over the last few days, Iran has faced intense criticism over its aid drive in India, after a series of now-deleted social media posts by its embassy drew ire over Tehran’s positioning on Kashmir—seen as “giving a sectarian colour” to support extended by Indians. The embassy deleted posts including one thanking Kashmiris, another showing a Kashmiri woman giving away her gold as donation, after pushback from Pakistan-based social media accounts.
The Vienna Convention on Diplomatic Relations, which defines the framework for diplomatic protocols, does not explicitly address fundraising by foreign missions, but allows them banking rights. “This remains a grey area for any country. However, diplomatic missions are allowed banking rights strictly for official work,” a source said.
The rules prohibit embassies from using their primary bank accounts for any other activity, including receiving donations. “A separate bank account must be created with the permission of the Ministry of External Affairs,” the source added.
Funds raised can be repatriated only after stringent scrutiny by the Reserve Bank of India. In some cases, such as donations received by the Syrian embassy in India in the aftermath of a devastating earthquake in Syria in 2023, the money has remained parked in local accounts.
Initially, the Iranian embassy in India sought donations through its main bank account on 14 March, but later opened a separate one with the State Bank of India for this purpose.
Following repeated requests from charitable and benevolent members among our Indian brothers and sisters to provide humanitarian assistance to Iranian compatriots affected by the ongoing war, the Embassy of the Islamic Republic of Iran in New Delhi hereby announces the following…
— Iran in India (@Iran_in_India) March 14, 2026
Sources explained that foreign missions are not permitted to accept donations in cash or through informal channels. Despite this, the Iranian embassy had also indicated direct cash contributions as an option on 15 March before moving to formalise the process.
Due to some reported difficulties in transferring funds to the Embassy’s account, we would like to express our sincere gratitude to our dear Indian brothers and sisters for their continued support. We are currently working to resolve the issue. In the meantime, please note the… https://t.co/INmftqudcC
— Iran in India (@Iran_in_India) March 15, 2026
Subsequently, Iran clarified that all donations must be routed through the designated account.
Sources said Iran has conveyed its intention to use the funds to purchase medicines in India, for which permission was granted.
India has already delivered a consignment of medicines to Iran on its own.
Meanwhile, a plane operated by Mahan Air, scheduled to fly from Mashhad to New Delhi to transport the medicines, was damaged in US airstrikes on an airbase before departure last week.
Iran is now planning another flight in the coming days to airlift the procured medicines from New Delhi.
(Edited by Gitanjali Das)
Also Read: Kashmir’s Iran aid drive under vigil owing to ‘dubious middlemen, unchecked cash’ in the mix