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Centre opposes CPR petition to allow using part of fund in FD

  • October 11, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
No Comments

 

 

Centre opposes CPR petition to allow using part of fund in FD

Subject :Polity

Section: legislation in news

Context: Centre opposes CPR petition to allow using part of funds in FD

More about the news:

  • The government expressed its disagreement with the Centre for Policy Research (CPR) understanding of the release of 25% of funds that were not used concerning fixed deposits.
  • This disagreement arose during a hearing at the Delhi High Court where CPR challenged the suspension of its registration certificate under the Foreign Contribution Regulation Act (FCRA).
  • The Ministry of Home Affairs had frozen CPRs accounts following a suspension order.
  • The main point of contention revolves around how “in his custody” is interpreted in Section 13(2)(b) of FCRA.
  • CPR argues that this includes funds that one has control or dominion over, like fixed deposits.
  •  On the other hand, the government maintains that fixed deposits should not be considered as amounts.

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 organizations.
  • 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  utilize 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

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.
Centre opposes CPR petition to allow using part of fund in FD

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