Why in the News?
Central Government announced that any NGO involved in anti-developmental activities and forced religious conversions will face cancellation of their registration under Foreign Contribution (Regulation) Act (FCRA), 2010.
What’s in Today’s Article?
- About FCRA (Objective, Major Provisions, FCRA Amendment Act, etc.)
- News Summary
About Foreign Contribution Regulation Act:
- The FCRA was first enacted in 1976 in order to maintain strict control over voluntary organisations and political associations that received foreign fundings.
- In 2010, the Act was repealed and a new Act with strict provisions was enacted.
- Objective: To regulate foreign donations and ensure that such contributions do not adversely affect internal security of India.
- Nodal Ministry: Ministry of Home Affairs
- It is applicable to all associations, groups and NGOs which intend to receive foreign donations.
Major Provisions Under the FCRA, 2010:
- It is mandatory for all such NGOs to register themselves under the FCRA.
- The registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.
- For such NGOs, filing of annual returns, on the lines of Income Tax, is compulsory.
- In 2015, the MHA notified new rules, which required NGOs to give an undertaking that the acceptance of foreign funds:
- Does not affect the sovereignty and integrity of India
- Does not impact the friendly relations with any foreign state
- Does not disrupt communal harmony
- All such NGOs would have to operate accounts in either nationalised or private banks which have core banking facilities to allow security agencies access on a real time basis.
For What Purpose a Registered NGO can Receive Foreign Contributions?
- A registered NGO can receive foreign contributions for the following five purposes:
- Social
- Educational
- Religious
- Economic
- Cultural
Who Cannot Receive Foreign Funding?
- Following individuals/organizations cannot receive foreign funding:
- A candidate contesting elections
- Media persons
- Judges
- Government employees
- Political parties
Foreign Contribution Regulation Amendment Act, 2020:
- The Amendment adds Public Servants to the list of people who cannot accept foreign contributions.
- It prohibits the transfer of foreign contribution to any other person.
- The term ‘person’ under the Act includes an individual, an association, or a registered company.
- It makes it mandatory to provide Aadhar number for any person seeking prior permission, registration or renewal of registration.
- It provides that the government may conduct an inquiry before renewing the certificate.
- It adds a provision allowing the central government to permit a person to surrender their registration certificate.
- It makes it mandatory for all NGOs receiving foreign aid to open an account in State Bank of India’s New Delhi branch.
News Summary:
- The Indian government announced that NGOs involved in anti-development activities, forced religious conversions, or actions affecting social or religious harmony may have their Foreign Contribution (Regulation) Act (FCRA) registration cancelled.
- The notice states that NGOs using foreign funds for personal gain, undesirable activities, or with links to terrorist or radical groups will also face cancellation.
- Additionally, NGOs not using foreign funds according to their stated objectives may lose their FCRA registration.
