SC Turns Down Plea To Extend Lapsed FCRA Licenses Of NGOs
The Supreme Court has refused to grant interim relief in a petition seeking extension of the validity of FCRA licenses of NGOs.
SC has refused to extend the canceled Foreign Contribution Regulation Act (FCRA) licenses of 6,000 NGOs. These NGOs did not follow the prescribed norms for receiving foreign funds.
FCRA makes it mandatory for NGOs to obtain a license from the Union Ministry of Home Affairs. This license entitles them to receive foreign funds.
FCRA was implemented in the year 1976 during the Emergency. It regulates foreign donations received by individuals and organizations so that they can act “in accordance with the values of a sovereign democratic republic”.
It was revised in the year 2010. The purpose of this amendment was to strengthen the law on the use of foreign money and prohibit the use of that money for any activity prejudicial to the national interest.
The law was revised again in the year 2020. This empowered the government to strictly control and check the receipt and use of foreign funds by non-governmental organizations.
However, the Supreme Court is yet to decide on the petitions challenging the amendments to the FCRA. The petitions have challenged the provisions of prohibition of transfer of foreign funds, making Aadhaar as a form of identification for prior approval and registration, and making it mandatory to open a primary FCRA account exclusively at SBI branch in New Delhi. .
What are the changes now?
- Prohibition on receiving foreign contribution by public sector employees.
- Prohibition on transfer of funds received under FCRA to other persons or organizations.
- Now only 20 percent of FCRA funds can be used for administrative expenses. Earlier it was 50 percent.
- Providing Aadhaar number has been made mandatory for all office bearers, directors or key officers of organizations. The government now has the power to suspend the FCRA registration of NGOs for more than 180 days.
- If the registration is renewed after a period of 5 years, the same will be scrutinized as a new applicant.
- The account designated for FCRA must be opened in Delhi branch of State Bank of India (SBI).
- Option for voluntary surrender of FCRA certificate will be available to non-profit organizations.
Source – The Hindu
