GoM to decide on FCRA successor

The Cabinet today decided to set up a Group of Ministers (GoM) to look into formulating a new act to replace the Foreign Contribution (Regulation) Act of 1976 as it had failed to check the overseas funding of anti-national organisations.

‘‘The Ministry of Home Affairs has proposed that the FCRA, 1976 should be repealed and replaced with a new act in view of various developments that have taken place,’’ Defence Minister Pranab Mukherjee said after a cabinet meeting chaired by Prime Minister Manmohan Singh.

He added that the previous NDA government had also set up a GoM to study the issue but had failed to introduce a Bill to give the law concrete shape. The new law was being formulated amid concerns from security agencies about huge diversion of foreign funds by NGOs as the FCRA had failed to prosecute any dodgy organisation.