Foreign Contribution Regulation Act: New crackdown on NGO foreign funds


Rajnath singh

The NDA government has proposed a series of amendments to the Foreign Contribution Regulation Act (FCRA) to strengthen its scrutiny of financial transactions involving NGOs.

In the most important change, the government plans to equate “economic security” for NGOs under the FCRA with the definition provided in Section 2 of the Unlawful Activities Prevention Act (UAPA).

Section 2 of the UAPA, amended in 2013, reads: “Economic security includes financial, monetary and fiscal stability, security of means of production and distribution, food security, livelihood security, energy security, ecological and environmental security.”

According to the proposed changes, NGOs and organisations that receive foreign donations will now have to share personal details, bank account details and bio-data of their trustees with the government.

Also, banks will have to provide online access to the Home Ministry and Intelligence Bureau (IB) for monitoring the utilisation of accounts of all FCRA-registered associations.

In April, the Home Ministry had cancelled the registration of Greenpeace India for “adversely impacting the economic security” of the country.

The government also plans to “clearly define” provisions under the law that require “prior approval” for associations to receive foreign funding — 16 organisations are currently under this category, the latest being the Ford Foundation.

When contacted, a senior government official denied that these amendments were part of a clampdown on NGOs.

“There is no attempt to clamp down on NGOs, we are making arrangements to make the entire procedure transparent. On many occasions, the NGOs are not aware about the rules and procedures to be followed, the idea is to educate them too,” the official said.

“We propose to clearly define prior-approval category… The procedures for placing NGOs and associations under this category also need to be laid down threadbare. Apart from this, the government will periodically issue advisories and cautionary notices to foreign donors as well so that the rules are reiterated to them,” the official added.

According to the amended rules, any foreigner associated with an NGO, who is visiting India, will have to furnish his/her details with the Foreigners Regional Registration Office (FRRO), spelling out the purpose as well as the dates of the visits.

The NGOs will have to list all their activities and declarations on a website, and register themselves under one of the nine Indian Acts: Societies Registration Act, 1860, Indian Trust Act, 1882, Section 25 of the Companies Act, 1956, Religion Endowments Act, 1863, Charitable and Religious Trust Act, 1920, Mussalman Wakf Act, 1973, Wakf Act, 1954, Public Wakfs Act, 1959 and Section 12 A of IT Act.

Source- Indian Express

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