ARC for checks on foreign funding

Even as the Union Government continues to dither on the need for stronger laws to deal with terrorist and fundamental organisations receiving funds from abroad, the Second Administrative Reforms Commission ARC on Tuesday came out with its recommendations on the issue.

In its report on Social Capital, the ARC said amendments were needed in the existing law to monitor big-ticket contributions received by all organisations from foreign contributors. Releasing the 231-page report here, ARC Chairman M Veerappa Moily said in order to make the Foreign Contribution Regulation Act, 1976 more stringent, organisations getting over Rs 10 lakh a year as foreign contribution should be put under the scanner. However, ARC feels organisations receiving an annual foreign contribution equivalent to less than Rs 10 lakh should be exempted from registration and other requirements.

8220;They should be asked to file an annual return of the foreign contribution received by them and its utilisation at the end of the year,8221; Moily said, adding that a law should be in place to ensure that in case there was reasonable suspicion of suppression or misrepresentation of facts, such organisations could be investigated and penalised, if found guilty.

The ARC report says the panel was aware that a large number of voluntary organisations were receiving donations from foreign sources. 8220;As many as 99 organisations received contributions above Rs 10 crore in 2005-06 compared to 70 in 2004-05 and 57 in 2003-04,8221; the report says.