Why in the news?

  • The Union Ministry of Home Affairs (MHA) cancelled the FCRA license of climate activist Sonam Wangchuk’s organisation.

Foreign Contribution Regulation Act (FCRA)

  • Origin: During the Emergency, the FCRA was passed in 1976 due to concerns that foreign governments were funding independent organizations to meddle in India’s internal affairs.
  • Aim: The law aims to control foreign donations to organizations and people to ensure that they operate following the principles of a sovereign democratic republic.
  • Who can register?: FCRA registrations are granted to individuals or associations with definite cultural, economic, educational, religious, and social programs.
  • Amendments
    • The FCRA was revised in 2010 to “consolidate the law” on the use of foreign funds and “to prohibit” their use for “any activities detrimental to the national interest,” 
    • The 2020 amendment strengthened government oversight and control over how foreign donations to NGOs are received and used.
  • The FCRA requires every person or NGO seeking to receive foreign donations to be:
    • Registered under the Act,
    • To open a bank account for the receipt of foreign funds in the 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.
  • Exceptions
    • Under the FCRA, applicants must be genuine and cannot engage in forced or incentivized religious conversions. 
    • They must not have been charged or convicted of inciting communal conflict.
    • The Act also prohibits political parties, public officials, journalists, media organizations, judges, government employees, and politically affiliated groups from accepting foreign donations.

 

 

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