NB In List | Home Ministry amends FCRA rules: NGOs registered will have to give details of foreign funds
The Ministry of Home Affairs has asked NGOs registered under FCRA to provide details of moveable and immovable assets created by them using foreign funds.
Total Views |
New Delhi, Set 26: In a significant development, the Ministry of Home Affairs (MHA) has amended rules pertaining to the filing of annual returns by non-governmental organizations (NGOs) registered under the Foreign Contribution Regulation Act (FCRA).
The ministry has asked them to provide details of moveable and immovable assets created by them using foreign funds.
The MHA made the changes in the Foreign Contribution Regulation Rules, 2010, by inserting two clauses -- (ba) details of movable assets created out of foreign contribution (as on March 31 of financial year) and (bb) details of immovable assets created out of foreign contribution (as on March 31 of financial year)-- in Form FC-4.
MHA (Ministry of Home Affairs) amends the Foreign Contribution (Regulation) Rules. Now, NGOs have to submit the details of movable assets created out of foreign contribution (as on 31st March of Financial Year). pic.twitter.com/5bAvn1DhuM
— ANI (@ANI) September 25, 2023
The MHA, in a notificition, said, "In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010). the Central Government hereby makes the following rules further to amend the Foreign Contribution (Regulation) Rules. 2011. namely:-
1. Short title and commencement. — (I) These rules may be called the Foreign Contribution (Regulation) Amendment Rules. 2023. (2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Foreign Contribution (Regulation) Rules. 2011. in Form FC-4, in serial number 3, after clause (b). the following shall be inserted, namely:— "(ba) Details of movable assets created out of foreign Contribution (as on 31st March of financial year)." (bb) Details of immovable properties acquired out of foreign contribution (as on 31st March of financial year).
What is FCRA?
FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India’s affairs by pumping money into the country through independent organisations.
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.
There were amendments, too. An amended FCRA was enacted in 2010 to “consolidate the law” on utilisation of foreign funds, and “to prohibit” their use for “any activities detrimental to national interest”.
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.
There were amendments, too. An amended FCRA was enacted in 2010 to “consolidate the law” on utilisation of foreign funds, and “to prohibit” their use for “any activities detrimental to national interest”.
The law was amended again in 2020, giving the government tighter control and scrutiny over the receipt and utilisation of foreign funds by NGOs.