The Ministry of Home Affairs (MHA) In a notice uploaded on the Ministry’s website has recently listed 17 reasons for denial of registration or renewal under the Foreign Contribution Regulation Act (FCRA), 2010 to NGOs.
Non-Governmental Organization (NGO)
- NGOs are bodies that function independently of any government with the objective of promoting social welfare.
- NGOs are typically non-profit civil society organisations that are established on community, national, and international levels to serve a social or political goal such as a humanitarian cause or the protection of the environment.
- Areas: NGOs focus on a wide range of issues and areas including women’s rights, the health of the environment and planet, healthcare, political advocacy, labour unions, religious faith, care of ageing adults, and youth empowerment.
- Types:
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- Operational NGO: It focuses on the design and implementation of development projects
- Advocacy NGO: It defend or promote a specific cause and seek to influence public policy
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Reasons Cited for Cancellation of Registration or Renewal
- Welfare Orientation: If it was found in the field inquiry that no reasonable activity for welfare of society has been undertaken by the association during the last 2-3 years or the association itself has become defunct.
- Prosecution of Member: If any of the office bearers, members or key functionaries is/are convicted under any law or a pending prosecution for any offence against them.
- Non- Responsive: The association has not responded to official clarifications sought or provided with the requisite information/document(s).
- Improper Application Form: Concealment of facts/information by the Association in its application form or the application Form is incomplete.
- Benami Organisation: If the field inquiry finds office bearers/ Members to be are fictitious/ benami and only for namesake as none are found at the given address provided by the association in its form FC-3C/FC-3A.
- Wrong Address:The association does not exist at the given address provided by the association in its form FC-3C/FC-3A.
- Application Rejected Before: The certificate of registration of the association has already been cancelled. Therefore the association is not eligible for accepting FC for three years from the date of cancellation.
- Diversion of Funds: Foreign contribution funds are being diverted for carrying out anti-development activities or inciting malicious protests.
- Funds used for Personal Benefit: Field inquiry has revealed the likelihood of utilization of FC funds for undesirable activities or for personal gain by the association or the office bearers.
- Linkage with Anti National Organisation: If the association is involved in adverse activities like involvement in anti-developmental activities,inciting protests with malicious intentions, linkage with terrorist organisation / anti-national organisations etc
- Adverse association: If the association or any of its members has linkages with radical/ terrorist entities.
- Involved in Religious Conversion: If the acceptance of FC funds is likely to affect the social/religious harmony or the association is involved in carrying out forceful religious conversion/ proselytization
- If the association during the last 05 years has not utilized any FC for projects as per aims and objectives of the association.
- Violation of Section 18 of FCRA 2010: The association has not uploaded the Annual Returns of any of previous 6 Financial Years
- Association has violated any one or more of the provision of the Act or Rules like,
- Administrative expenses more than 2O percent
- Discrepancy in Annual Returns
- Not uploaded Bank statements, Income and Expenditure Account, Receipts and Payment account and Balance sheet along with Annual Return
- Transferred FC to an bank account which is a non-FCRA account
- Welfare Criteria: Association has not fulfilled the criteria of spending a minimum amount of Rs.15 Lakhs of its core activities for benefits of society during the last O3 Financial Years.
- Defunct: Association is not in existence for 03 years.
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About Foreign Contribution Regulation Act (FCRA)
- It regulates and prohibits the acceptance and utilisation of foreign contributions by certain associations for any activities detrimental to the national interest
- Enactment: FCRA was enacted during the Emergency in 1976 amid concerns that foreign powers were interfering in India’s affairs by pumping money into the country through independent organisations.
- Key Amendments:
- FCRA Amendment 2020: The law was amended again, giving the government tighter control and scrutiny over NGOs’ receipt and utilisation of foreign funds.
- Foreign Contribution (Regulation) (Amendment) Rules, 2022: It increased the number of compoundable offenses under the Act from 7 to 12.
- Exemption from intimation to the government for contributions less than Rs 10 lakh, the earlier limit was Rs 1 lakh.
- Increase the time limit for the intimation of the opening of bank accounts.
- Prohibited to accept Foreign Contribution: The Act bars candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers, public servants and organisations of a political nature to accept foreign funds.
- Duration: FCRA registration is valid for five years.
- NGOs are expected to apply for renewal within six months of the registration expiry date. In case of failure to apply for renewal, the registration is deemed to have expired.
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November 13, 2024
