FCRA

Subject : Polity

Context : The Ministry of Home Affairs (MHA) has relaxed norms for farmer, student, religious and other groups who are not directly aligned to any political party to receive foreign funds if the groups are not involved in “active politics”.

Concept :

• The Ministry notified new rules under the Foreign Contribution Regulation Act (FCRA), 2010 on Wednesday thereby amending the FCRA Rules, 2011.
• The new rule said, “The organisations specified under clauses (v) and (vi) of sub-rule (1) shall be considered to be of political nature, if they participate in active politics or party politics, as the case may be.
• It is mandatory to have FCRA clearance from the Home Ministry for any organisation to receive foreign funds.
• Foreign funding of voluntary organizations in India is regulated under FCRA act and is implemented by the Ministry of Home Affairs.

Key provisions of the Foreign Contribution (Regulation) Act (FCRA), 2010:

• Under the Act, organisations require to register themselves every five years.
• As per the amended FCRA rules, all NGOs registered or granted prior permission under FCRA are now required to upload details of foreign contributions received and utilized by them every three months on their website or the FCRA website.
• NGOs now need to file their annual returns online, with the hard copy version dispensed with.

Who cannot accept Foreign Contribution?

• Election candidate
• Member of any legislature (MP and MLAs)
• Political party or office bearer thereof
• Organization of a political nature
• Correspondent, columnist, cartoonist, editor, owner, printer or publishers of a registered Newspaper.
• Judge, government servant or employee of any corporation or any other body controlled on owned by the Government.
• Association or company engaged in the production or broadcast of audio news, audio visual news or current affairs programmes through any electronic mode
• Any other individuals or associations who have been specifically prohibited by the Central Government

What is the eligibility criteria for grant of registration?

• The Association must be registered (under the Societies Registration Act, 1860 or Indian Trusts Act 1882 or section 8 of Companies Act, 2013 etc.)
• It should normally be in existence for at least 3 years.
• It has undertaken reasonable activity in its field for the benefit of the society.
• It has spent at least Rs.10,00,000/- (Rs. ten lakh) over the last three years on its activities.