Government warns NGOs of penal action for receiving foreign funds without FCRA registration
The Hindu
The Union Home Ministry on January 21, 2025, warned NGOs of penal action if they receive foreign funds without registration under the Foreigners Contribution Regulation Act, 2010. FCRA registration is mandatory to receive foreign donations
The Union Home Ministry on Tuesday (January 21, 2025) warned non-government organisations (NGOs) of penal action if they receive foreign funds without registration under the Foreigners Contribution Regulation Act, 2010 (FCRA). FCRA registration is mandatory to receive foreign donations.
In a public notice, the Ministry said that each FCRA-registered NGO or association has to utilise foreign contribution (FC) for the purpose for which it has been registered or granted prior permission under the Act. It added that no person shall accept FC unless such a person obtains a certificate of registration or prior permission from the Union government.
Also, Section 16 of the Act stipulates that every person who has been granted a certificate shall have such documents renewed within six months before expiry of the period of such certificate.
“Accordingly, the Foreign Contribution (Regulation) Rules, 2011 prescribes that no person whose certificate of registration has ceased to exist shall either receive or utilise foreign contribution. However, instances have come to notice of this Ministry where credit or debit of FC has been noticed into the accounts of NGOs/associations who have not been granted registration/ prior permission/ renewal under the FCRA, 2010 or such NGOs/associations whose registration has ceased on expiry of validity period or whose registration has been cancelled,” the Ministry said.
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It added that any receipt or utilisation of FC without valid FCRA registration is violation of provisions of the Act.
The Ministry stated that any transaction in FCRA accounts/FCRA utilisation accounts of the NGO whose FCRA certificate has been cancelled ceased or its validity expired would amount to violation of FCRA, 2010 and is liable for penal action.
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