Foreign Contribution Regulation Act

Continuing its hard stance against NGOs and associations that receive foreign funds, the NDA government on Monday notified new rules that require them to give an undertaking that the acceptance of foreign funds is not likely to affect the “sovereignty and integrity of India or impact friendly relations with foreign state and does not disrupt communal harmony.” Under the annual returns category, also known as Form FC-4, the NGOs have been asked to give an undertaking that the foreign funds are utilised in such a way that it does not affect the “security, strategic, scientific or economic interest, public interest, freedom or fairness of election to any legislature or harmony between religious, social, racial, linguistic group, caste or communities.” Earlier this year, the Ministry of Home Affairs cancelled the registration of Greenpeace under the Foreign Contribution Regulation Act (FCRA) on the premise that it had compromised the country’s “economic security” by allegedly orchestrating protests at coal plants and other development projects. The Ministry has also suspended the registration of the Gujarat-based social activist Teesta Setalvad’s Sabrang Trust. Sixteen foreign donors are now under the Ministry’s “prior-permission” category including the U.S.-based Ford Foundation that funded Sabrang Trust. As reported by The Hindu earlier, the government has dropped the clause that would have made it mandatory for NGOs to declare their social media accounts like Twitter handle and Facebook pages. But the Ministry has decided to keep the clause mandating banks to inform it of all foreign funds coming to an NGO account within 48 hours. In June this year, the Ministry put up draft amendment rules and sought the suggestions of stakeholders. On Monday, the amended Foreign Contribution Regulation Rules, 2015, were notified. Under them, all dealings with NGOs will now be online. Home Minister Rajnath Singh on Monday inaugurated the portal for online filing of returns and details by NGOs.