Centre cancels FCRA licence of Rajiv Gandhi Foundation

Subject :Polity

Context:

Recently, theMinistry of Home Affairs has cancelled the Foreign Contribution (Regulation) Act (FCRA) licence of Rajiv Gandhi Foundation (RGF) and Rajiv Gandhi Charitable Trust (RGCT) for alleged violations of the provisions of the Act.

What is FCRA:

The law sought to regulate foreign donations to individuals and associations so that they functioned in a manner consistent with the values of a sovereign democratic republic.
The law was enacted during the Emergency in 1976 amid apprehension that foreign powers were interfering in India’s affairs by pumping in funds through independent organisations.
These concerns had been expressed in Parliament as early as in
It is implemented by the Union Home Ministry.

What are the provisions of the Act:

The FCRA requires every person or NGO seeking to receive foreign donations to be
To be registered under the Act
To open a bank account for the receipt of the foreign funds in State Bank of India, Delhi
To utilise those funds only for the purpose for which they have been received and as stipulated in the Act
To file annual returns and not to transfer the funds to another NGO
The Act prohibits the receipt of foreign funds by candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of legislature and political parties or their office-bearers, and organisations of a political nature.

How is FCRA registration granted:

FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
NGOs that want to receive foreign funds must apply online with the required documentation.
Authority– The Ministry of Home Affairs makes inquiries through the Intelligence Bureau into the antecedents of the applicant and approves or rejects 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.
Eligibility- Under the FCRA, the applicant
Should not be fictitious or benami
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
Should not have been prosecuted for or convicted of creating communal tension or disharmony
Should not have been found guilty of diversion or misutilisation of funds
Should not be engaged or likely to be engaged in the propagation of sedition
Validity– Once granted, FCRA registration is valid for five years and NGOs are expected to apply for renewal within six months of the date of expiry of registration.
In case of failure to apply for renewal, the registration is deemed to have expired.

What are the basis for the cancellation of approval:

Registration can be cancelled on account of the following reasons
If it finds it to be in violation of the Act
If an inquiry finds a false statement in the application
If the NGO is found to have violated any of the terms and conditions of the certificate or renewal
If it has not been engaged in any reasonable activity in its chosen field for the benefit of society for two consecutive years
If it has become defunct
If in the opinion of the Central Government, it is necessary in the public interest to cancel the certificate
If an audit finds irregularities in the finances in terms of misutilisation of foreign funds
The person or NGO concerned has been given a reasonable opportunity of being heard.
Re-registration– Once the registration of an NGO is cancelled, it is not eligible for re-registration for three years.
Suspension– The ministry also has powers to suspend an NGO’s registration for 180 days pending inquiry, and can freeze its funds.
All orders of the government can be challenged in the High Court