The “Foreign Contribution (Regulation) Act” (FCRA) and NGO’s.

Govt cancelled over 6600 FCRA License of various NGOs across country.PIC

• The Government has cancelled over six thousand six hundred Foreign Contribution (Regulation) Act (FCRA) License of various NGOs across the country during the 2017 to 2021. The highest FCRA licenses were cancelled in Tamil Nadu and Maharashtra as over seven hundred. While, over six hundred licences had been cancelled in Uttar Pradesh, Andhra Pradesh and west Bengal. The Rajiv Gandhi Foundation and Rajiv Gandhi Charitable Trust are also included in the list.
• In a written reply in the Rajya Sabha, Minister of State for Home Affairs Nityanand Rai informed this yesterday.
• The government said, These NGOs were violating the various provisions of the FCRA Act. It said, the NGOs whose FCRA registration has been cancelled under the FCRA, will not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of registration.

 What is the FCRA?

• The “Foreign Contribution (Regulation) Act” (FCRA) regulates foreign donations and ensures that such contributions do not adversely affect internal security.
• First enacted in 1976, it was amended in 2010in which a slew of new measures was adopted to regulate foreign donations.
• The FCRA act is implemented by the Ministry of Home Affairs.
• Under the new rules notified by MHA in 2015, NGOs are required to give an undertaking that the acceptance of foreign funds is not likely to prejudicially affect the sovereignty and integrity of Indiaor impact friendly relations with any foreign state and does not disrupt communal harmony.

Applicability:

• The FCRA is applicable to all associations, groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to register themselves under the FCRA.

Provisions of the Act:

• The FCRA requires every person or NGO wishing to receive foreign donations to be registered under the Act.
• To open a bank account for the receipt of foreign funds in State Bank of India, Delhi is mandatory.
• These funds can be utilised only for the purpose for which they have been received, and as stipulated in the Act.
• The receivers of foreign funds are also required to file annual returns, and they must not transfer the funds to another NGO.