TAG: GS 2: POLITY
THE CONTEXT: Recently, the Foreign Contribution Regulation Act, 2010 (FCRA) registration of two prominent non-governmental organisations (NGOs) — Centre for Policy Research (CPR) and World Vision India (WVI) have been cancelled.
EXPLANATION:
- The Foreign Contribution Regulation Act (FCRA) plays a crucial role in regulating foreign donations to NGOs in India.
- The Union Ministry of Home Affairs (MHA) is responsible for overseeing the implementation of the FCRA, ensuring that foreign funds do not compromise the country’s internal security.
- Thousands of NGOs faced FCRA registration renewal in 2020-2021, with the process being impacted by the COVID-19 pandemic and amendments to the FCRA Act in 2020.
- The MHA, recognizing these challenges, extended the renewal deadline multiple times, with the latest extension set until March 31, 2024.
Evolution of FCRA Legislation:
- Enacted in 1976, the FCRA underwent significant changes, culminating in the 2010 legislation.
- Further amendments were made in 2020.
- It solidified the legal framework for NGOs receiving foreign donations.
- Registration under FCRA is mandatory for entities intending to receive foreign contributions.
Scale of FCRA Cancellations:
- Since 2015, over 16,000 NGOs have seen their FCRA registrations canceled due to violations.
- As of January 22, there were 16,989 FCRA-registered NGOs.
- Nearly 6,000 NGOs had their registrations cease from January 1, 2022, either due to MHA refusals or the NGOs not applying for renewal.
MHA Report on NGO Vulnerability:
- A 2012 MHA report highlighted the vulnerability of the NGO sector, acknowledging over 20 lakh registered NGOs in the country.
- Less than 2% of these are registered under FCRA.
- The report emphasized the risks of money laundering and terrorist financing, necessitating rigorous enforcement and international coordination.
Fresh FCRA Registrations and Trends:
- In 2023, a record 1,111 associations gained fresh FCRA registration.
- Analysis revealed that nearly half of these registrations under the religious category were for Christian NGOs.
- Out of 1,615 applications received in 2021 and 2022, 722 were granted clearance, while 225 applications were rejected.
Foreign Contribution Statistics:
- The MHA reported that 13,520 associations received ₹55,741.51 crore in foreign contributions during the financial years 2019-2022.
- It indicates the substantial impact of foreign aid on various social, economic, and cultural programs.
- The MHA alleged that Centre for Policy Research (CPR) diverted foreign donations for protests against developmental projects, impacting India’s economic interests.
- CPR’s involvement in producing current affairs programs, using foreign funds, was deemed a violation.
- World Vision India’s (WVI) registration was canceled for FCRA violations spanning from 2012-13 to 2020-21.
Responses and Controversies:
- CPR contested the MHA’s decision, labeling it incomprehensible and disproportionate.
- CPR argued that some reasons challenged the very functioning of a research institution.
- WVI, a major recipient of foreign donations, faced cancellations over alleged violations, raising questions about the application of FCRA regulations.
Conclusion:
- The cancellations of FCRA registrations for CPR and WVI shed light on the government’s commitment to ensuring accountability in the utilization of foreign contributions.
- The broader context of FCRA cancellations underscores the challenges and complexities of regulating the NGO sector, balancing transparency, and safeguarding national interests.
- As FCRA continues to evolve, the need for fair assessments and clear communication between regulatory authorities and NGOs becomes imperative.
