Cancellation of FCRA Registration

The Commonwealth Human Rights Initiative (CHRI) approached the Delhi High Court against Cancellation of FCRA Registration.

• Grounds for Cancellation: CHRI’s FCRA registration was suspended in June 2021.
  • Security Concerns: Cancellation was reportedly based on inputs from security agencies.
  • Allegations Against CHRI: Authorities cited suspected diversion or misuse of foreign funds.

About Commonwealth Human Rights Initiative (CHRI)

• The CHRI is an independent, international NGO dedicated to promoting and protecting human rights across the Commonwealth.
• It works through research, advocacy, capacity building, and grassroots mobilisation to ensure human rights accountability and policy reforms.
• Establishment: CHRI was founded in 1987 by a coalition of Commonwealth-based organisations, including the Commonwealth Journalists Association, the Commonwealth Lawyers Association, and the Commonwealth Medical Association.
• Headquarters: CHRI operates from offices in New Delhi (India), London (UK), and Accra (Ghana), allowing it to work on human rights issues globally.
• Activities of CHRI: 
• • Advocates for access to justice through police and prison reforms.
  • Works on freedom of expression and media rights.
  • Supports civil society engagement with UN human rights mechanisms.
  • Leads anti-human trafficking and modern slavery initiatives.
  • Serves as the founder of SAMDEN and the Commonwealth 8.7 Network.
• CHRI upholds values of accountability, inclusivity, integrity, and empowerment, aligning its mission with Commonwealth principles and UN SDGs.

About Foreign Contribution (Regulation) Act (FCRA)

• Foreign Contribution (Regulation) Act (FCRA) : Governs foreign funding received by NGOs and associations in India.
• Purpose: Ensures foreign contributions do not influence political or other sensitive activities.
• Regulatory Body: Ministry of Home Affairs oversees compliance and enforces the Act.
• Recent Issues: Several NGOs have faced FCRA registration suspension or cancellation due to alleged violations.

Grounds for Cancellation of FCRA Registration   

• Violation of FCRA Provisions: If an organization contravenes any provisions of the Foreign Contribution (Regulation) Act, 2010 or its 2020 amendments, its registration can be canceled.
• Misuse of Foreign Contributions: If funds are misappropriated, diverted, or used for purposes other than those permitted under the Act, cancellation may be enforced.
• Threat to National Sovereignty and Security: If an NGO’s activities are deemed harmful to national interests, security, or sovereignty, its registration can be revoked.
• Failure to Maintain Transparency: Non-compliance with financial reporting, lack of proper record-keeping, or refusal to open an FCRA account at SBI’s designated New Delhi branch can lead to cancellation.
• Non-Compliance with Government Directives: If an NGO fails to comply with conditions of renewal, Aadhaar verification, or inquiry results, its registration may be surrendered or revoked.

Criticism of FCRA and Previous Court Directives

• Criticism of FCRA : Critics argue the Act is used to curb dissent and restrict civil society organizations.
  • Restriction has led to closures of many NGOs in India, For example Amnesty International, announced the closure of its offices in India in 2020.
• Supreme Court’s Past Directives : SC has previously ruled that FCRA regulations must be enforced fairly and transparently.
• Recommendations : Experts suggest reforms to ensure FCRA compliance procedures are more transparent and just.

Supreme Court’s Observations and Directives on FCRA 2020

• Upholding Section 7:  SC ruled that banning NGOs from transferring foreign contributions ensures funds are used for permitted purposes and prevents misuse threatening national sovereignty.
• Bank Account Requirement : Mandating NGOs to open accounts at SBI’s Sansad Marg branch enhances transparency and accountability in foreign fund transactions.
• Aadhaar Requirement Modified:  Court ruled that NGO officeholders can submit passports instead of Aadhaar for FCRA clearance, addressing privacy concerns.
• Legislative Intent Affirmed: SC emphasized that foreign donations are not a fundamental right and must be regulated to protect democratic values.

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