Opinion | On Coordinated Efforts By Certain NGOs Against Indian Businesses

The key objective of enacting the amended Foreign Contribution Regulation Act (FCRA) of 2010 was to consolidate the law to "regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto".

When the UPA government amended the provisions regarding foreign contributions after six years in power, there was a grim realisation among policymakers that some influential NGOs, particularly those with external connections, were deviating from their stated objectives. This deviation created situations detrimental to developmental projects and national interests.

However, barring some isolated actions, no substantial scrutiny or harsh measures were initiated against these errant organisations. Many in the ruling dispensation's support groups felt that these NGOs and their extensive networks suffered from political prejudices. After all, these organisations wielded significant financial power from offshore accounts, had perceived intellectual credibility, used to associate themselves with high-sounding objectives, and had substantial backing from segments of the media, academia, and political circles.