Foreign funds without FCRA: Govt may bring in 2-time limit for NGOs

As per FCRA, an organisation applying for prior permission should have prepared a reasonable project for the benefit of society for which the foreign funding is proposed to be utilised.

The Home Ministry is considering setting a limit of only two times for NGOs to receive foreign funds without registering under the Foreign Contribution Regulation Act (FCRA).

Sources said the move was prompted by a preliminary inquiry by the Home Ministry, which revealed that Amnesty International India had received Rs 3.09 crore and Rs 2.23 crore in four installments since 2000 without having registered under the FCRA but by applying for prior permission from the government on each occasion.

Officials have interpreted Section 12 (b) and (c) of FCRA and FCRA Rule 9 to arrive at the conclusion that an NGO should be permitted to receive foreign funds through the prior permission route only twice, sources said.

Story continues below this ad

As per FCRA, an organisation applying for prior permission should have prepared a reasonable project for the benefit of society for which the foreign funding is proposed to be utilised.

The rules state that an organisation can apply for prior permission for the same project a second time only after six months from the first application. According to MHA officials, the rules do not make a mention of applying for prior permission for the same project more than twice.

Stay updated with the latest - Click here to follow us on Instagram