Home Ministry cancels FCRA licences of NGOs

•  Home Ministry cancels FCRA licences of Greenpeace and Citizen for Justice and Peace
• The move comes after the licences were inadvertently renewed for five years automatically online. These NGOs are accused of prejudicial affecting public interest of the country and violation of various provisions of FCRA.

About FCRA:

• FCRA (Foreign currency regulation act), 2010 was enacted with the primary purpose of regulating the inflow of foreign contributions and ensuring that the received foreign contributions are not utilized for purposes other than those specified under the legislation.
• All charitable organizations in India receiving foreign contributions come under the purview of this Act.
• The organizations having a definite cultural, economic, educational, religious or social programme are entitled to accept foreign contributions under the FCRA. Such contributions may be accepted only with the approval of the Government of India, through the Ministry of Home Affairs.
• In order to be eligible to receive the foreign contributions, an organization may seek prior approval either each time the entity is to receive contributions or by obtaining a one-time long term registration, which is valid for a period of 5 years.
• In the latter case, the permission needs to be renewed by applying at least 6 months prior to the date of expiry of the said permission.
• Upon obtaining registration/prior permission, the organization is required to open and maintain a bank account exclusively for the receipt and utilization of foreign contributions under FCRA. All transactions related to foreign contributions must be executed only from the aforesaid bank account. In addition, a separate set of accounts and records is required to be maintained, exclusively for foreign contributions received and utilized.
• FCRA mandates that foreign contributions should be utilized only for the purpose for which they were received.
• Person is prohibited from transferring contributions to any other person, unless such transferee is authorized to receive foreign contributions.

By: Vishal