The Supreme Court upheld amendments introducing restrictions in the Foreign Contribution (Regulation) Act (FCRA) while holding that no one has a fundamental or absolute right to receive foreign contributions.
About:
In a judgment that may hit non-governmental organisations (NGOs) working at the grass-root level with no direct link to foreign donors, the court reasoned that unbridled inflow of foreign funds may destabilise the sovereignty of the nation.
The restrictions involve a bar on using operational FCRA accounts to get foreign contributions and mandatory production of the Aadhaar card for registration under the FCRA.
They require NGOs and recipients to open a new FCRA account at a specified branch of the State Bank of India in New Delhi as a “one-point entry” for foreign donations.
Free and uncontrolled inflow of foreign funds has the potential to impact the socio-economic structure and polity of the country.
The court said charity could be found at home. NGOs could look within the country for donors.
Unregulated inflow of foreign donations would only indicate that the government was incapable of looking after its own affairs and needs of its citizens.
The amendments do not prohibit inflow of foreign contributions, but are a regulatory measure to permit acceptance by registered persons or persons having prior permission to do so with condition that they must themselves utilise the entire contribution.
However, the court read down one of the provisions — Section 12 (A) — of the 2020 Amendment Act, which mandated the production of Aadhaar card for registration.
Dear Student,
You have still not entered your mailing address. Please enter the address where all the study materials will be sent to you. (If applicable).
