CBI registers FIR against Environics Trust for alleged violation of FCRA provisions

  • January 19, 2024
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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CBI registers FIR against Environics Trust for alleged violation of FCRA provisions

Subject : Polity

Section: Legislation in news

Context:

  • The CBI has alleged that Environics Trust has funded agitators and had been involved in activities creating law and order issues in the country.

More on news:

  • The CBI has alleged that Environics Trust has funded agitators and had been involved in activities creating law and order issues in the country.
  • As of now, there are 22,457 NGOs or associations registered under the FCRA, while the licenses of 20,674 were canceled and 6,702 are deemed to have expired.

About FCRA:

  • Foreign funding of persons in India is regulated under FCRA act and is implemented by the Ministry of Home Affairs.
  • Individuals are permitted to accept foreign contributions without permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
  • As defined in Section 2(1)(h) of FCRA, 2010, “foreign contribution” means the donation, delivery or transfer made by any foreign source.
  • Foreign source, as defined in Section 2(1) (j) of FCRA, 2010 includes:-
    • the Government of any foreign country or territory and any agency of such Government;
    • any international agency, not being the United Nations or any of its specialized agencies, the World Bank, International Monetary Fund or such other agency as the Central Government may, by notification, specify in this behalf;
    • a foreign company; 
    • a corporation, not being a foreign company, incorporated in a foreign country or territory; 
    • a multinational corporation referred to in sub-clause 
    • of clause ; 
    • a company within the meaning of the Companies Act, 1956,
  • This Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
  • Under the Act, organizations are required to register themselves every five years.
  • Registered NGOs can receive foreign contributions for five purposes: Social, educational, religious, economic and cultural.
  • Suspension of FCRA license means that the NGO can no longer receive fresh foreign funds from donors pending a probe by the Home Minister.
  • The FCRA is mandatory for associations and NGOs to receive foreign funds.

The Foreign Contribution (Regulation) Amendment Bill, 2020:

  • Prohibition to accept foreign contribution: Under the Act, certain persons are prohibited to accept any foreign contribution.
    • These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others. 
  • Transfer of foreign contribution: Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution (or has obtained prior permission under the Act to obtain foreign contribution).
  • Aadhaar for registration: The Act states that a person may accept foreign contribution if they have:
    • (i) obtained a certificate of registration from central government, or
    • (ii) not registered, but obtained prior permission from the government to accept foreign contributions.
  • FCRA account: Under the Act, a registered person must accept foreign contributions only in a single branch of a scheduled bank specified by them.
  • Restriction in utilization of foreign contribution:The Bill adds that the government may also restrict usage of unutilised foreign contribution for persons who have been granted prior permission to receive such contribution.
  • Renewal of license:Under the Act, every person who has been given a certificate of registration must renew the certificate within six months of expiration.
  • Reduction in use of foreign contribution for administrative purposes: Under the Act, a person who receives foreign contribution must use it only for the purpose for which the contribution is received.
  • Surrender of certificate: The Bill adds a provision allowing the central government to permit a person to surrender their registration certificate.

Eligibility and Procedure for FCRA license:

  • The FCRA registration guidelines require that the Association should be a non-profit organization and must be registered under one of the Indian societies laws:
    • The Indian Societies Registration Act, 1860 or. 
    • The Indian Trusts Act, 1882 or.
    •  Section 25 of the Companies Act, 1956.
  • NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation.
  • FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
  • Following the application, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant, and accordingly processes the application.
  • The applicant should not be fictitious or benami and should not have been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another.
  • The applicant should also not have been prosecuted for or convicted of creating communal tension or disharmony, should not have been found guilty of diversion ,misutilisation of funds and should not be engaged or likely to be engaged in the propagation of sedition.
  • The MHA is required to approve or reject the application within 90 days. 
  • In case of failure to process the application in the given time, the MHA is expected to inform the NGO of the reasons for the same.
CBI registers FIR against Environics Trust for alleged violation of FCRA provisions Polity