Govt. cites 17 reasons to cancel FCRA registration

Context

The Union Home Ministry has listed diversion of foreign funds for carrying out anti-development activities, inciting malicious protests and religious conversions among 17 reasons to deny or cancel the FCRA registration of a non-governmental organisation (NGO).

About Foreign Contribution Regulation Act

• It is a legislative framework established by the Indian Parliament to oversee the receipt and usage of foreign contributions by individuals, associations and companies.
• It was enacted in 1976 during the Emergency period to address concerns about foreign interference in India’s internal affairs.
• Contributions made by a Non-Resident Indian (NRI) from their personal savings through normal banking channels are not treated as foreign contributions under FCRA.
• The Ministry of Home Affairs (MHA) implements FCRA.
• 2020 Amendment in FCRA: Introduced restrictions on fund transfers, reduced administrative expense allowance from 50% to 20%, and mandated a specific SBI branch in New Delhi for foreign fund receipts.

FCRA Registration Criteria and Regulations

• Eligibility: FCRA registrations are issued to entities engaged in specific sectors such as culture, economy, education, religion and social work.
• Applicant Authenticity: Applicants must be genuine, not fictitious or in someone else’s name, and must not have engaged in forced or induced religious conversions.
• Validity Period: An FCRA registration remains valid for five years, requiring renewal submissions six months before its expiration.
• Cancellation Conditions: Registrations can be revoked if false information is discovered in the application.
• Post-Cancellation Restrictions: NGOs with cancelled registrations face a three-year prohibition on re-registration.
• Suspension Authority: The government can suspend an NGO’s registration for up to 180 days during investigations and can also freeze its financial assets.
• Legal Recourse: Decisions made by the government regarding FCRA matters can be appealed in the High Court.

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