In an important decision, the Ministry of Home Affairs on Monday (25 September 2023) issued a gazetted notification, amending the Foreign Contribution Regulation Act (FCRA) rules. As per the latest mandate, NGOs with FCRA licenses must submit details of movable and immovable assets created out of foreign contributions. This is seen as an important step to put a check on some of the NGOs which have been acting against national interests.
It has been observed that many #Christian pastors have syphoned off foreign funds doing #FCRAViolation n purchased properties worth 80,000 Crs in 4 South Indian States, many of them facing @IncomeTaxIndia @dir_ed inquiry for embezzlement.
Thanks HM @AmitShah Ji for resolute… pic.twitter.com/3Atp6RvnWb— Legal Rights Observatory- LRO (@LegalLro) September 27, 2023
Director K Sanjayan who had issued the notification said, “In exercise of the powers conferred by Section 48 of the FCRA, the Centre makes rules; short title and commencement – these rules may be called Foreign Contribution (Regulation) Amendment Rules, 2023 and they will come into force on the date of publication in Official Gazette – to amend the Foreign Contribution (Regulation) Rules, 2011.”
In 2022, the Ministry of Home Affairs made revisions to regulations governing foreign funding. These changes included granting certain concessions, such as permitting relatives to send larger sums of money under the FCRA and extending the deadline for organizations to notify the government when opening bank accounts for utilizing funds received under the ‘registration’ or ‘prior permission’ categories.
Through this amendment, the Centre has revised Form FC-4 – which NGOs need to fill out every year and declare their annual returns under the Act. The first table pertains to details of movable assets created out of foreign contributions during the financial year and must state the value of these assets at the beginning of the financial year.
The second table is about records and details of immovable assets that were created from foreign funds. Non-profit organisations are required to declare the size of these assets, their location and their value as per the balance sheet. The NGOs also must submit a commitment letter from their donors, wherein details of the amount of foreign contributions and the purpose for which they are proposed to be given.
However, NGOs have accused the Centre of using FCRA law to target organizations it does not agree with. Oxfam India Trust, Indian Youth Centres Trust, Jamia Millia Islamia and Tuberculosis Association of India were among the NGOs whose registrations became void in January last year. In April 2022, the MHA cancelled the FCRA registration of the human rights organization Commonwealth Human Rights Initiative.
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