Bill in Lok Sabha to make receipt, use of foreign funds stringent

Mandatory to submit their Aadhar details for seeking FCRA approvals

New Delhi: The government on Sunday said, that all the religious organisations could receive foreign contributions, as long as, they used these funds for states purposes, and not for 'undermining internal security'.

Minister of State for Home, Nityanand Rai made this statement in the Lok Sabha before the Foreign Contribution Regulation Act Amendment Bill 2020 was introduced through a voice note—negating objections from opposition Congress and TMC.

The Bill had made it mandatory for office bearers of the organisations seeking FCRA approvals to submit their Aadhar details, besides prohibiting public servants, and corporations owned and controlled by the government from receiving foreign funds.

So far only legislators, journalists, judges, and election candidates were prohibited.

The Bill provides the government powers to stop the utilisation of foreign funds through a domestic NGO after conducting a summary trial on complaints of misutilisation of funds.

Also, through another change to the original 1976 Act, the government has allowed itself the power to suspend FCRA certificate beyond the 180 days provided in the present law, which has been amended twice in the past, starting 2010.

Opposing the introduction of the bill, Congress’ Manish Tewari said, that while the statement of objects of the draft legislation say, that the government has cancelled FCRA licences of 19,000 organisations between 2010 and 2019, “the bill is silent on how many criminal investigations led to convictions.”

Tewari questioned the bar on some including public servants from receiving foreign contribution terming it a violation of Article 14 of the constitution.

He also flagged “unbridled power of harassment the government has given itself through the bill” by stopping fund use by summary trial and by increasing suspension period for FCRA licences from 180 to 365 days and said FCRA provisions should have been relaxed rather than be made stringent.

The minister allayed apprehensions of Congress’ Adhir Ranjan Chowdhury and TMC’s Saugata Roy regarding submission of Aadhar details of NGO directors saying the provision was in line with the spirit of Supreme Court’s order on Aadhar.

Rai said the foreign contribution by any organisation can only be received in a dedicated FCRA account with the SBI, New Delhi account but “documents for such registration can be submitted at the local SBI branch.”

Seeking to amend the FCRA Act, the amendment bill says: “The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same, for the purpose for which they were registered or granted prior permission under the said Act. Many of them were also found wanting in ensuring basic statutory compliances such as submission of annual returns and maintenance of proper accounts. This has led to a situation where the Central Government had to cancel certificates of registration of more than 19,000 recipient organisations, including NGOs, between 2011 and 2019. The criminal investigations also had to be initiated against dozens of such NGOs which indulged in outright misappropriation or misutilisation of foreign contribution.”