Home Ministry asks NGOs to declare movable and immovable assets acquired using foreign grants annually

Centre tightens FCRA rules, extends validity of licences till March 2024

Sep 27, 2023 - 09:06
Home Ministry asks NGOs to declare movable and immovable assets acquired using foreign grants annually

In accordance with the Foreign Contribution Regulation Act (FCRA), the Union Home Ministry has issued a notification requesting information from NGOs and not-for-profit organizations regarding the moveable and immovable assets acquired each year using foreign grants.

According to sources, the action was taken to hold NGOs registered under the FCRA accountable. Any NGO or organisation that wants to accept foreign donations must register under the FCRA.

"NGOs or associations will have to provide details of the movable and immovable assets acquired by them using foreign donations every financial year," said an official from the home ministry.

The validity of the FCRA licences of those organizations whose permits would expire on September 30 has also been extended by the ministry, according to the official, until March 31, 2024.

In India, there are over 16,500 organizations and groups having FCRA licenses.

By adding two clauses to Form FC-4, (ba) details of movable assets created out of foreign contribution (as of March 31 of every financial year), and (bb) details of immovable assets created out of foreign contribution (as of March 31 of every financial year), the home ministry changed the Foreign Contribution Regulation Rules, 2010, to reflect these changes. NGOs and organizations with FCRA licenses must complete this form in order to file their yearly returns.

The Center has tightened the guidelines and processes for NGOs receiving and using foreign funding during the last eight years. Hundreds of NGOs had their FCRA licenses revoked by the government on the grounds that they had broken the law, according to the administration. Several civil society organizations have accused the Center of seeking to muzzle criticism in response to the crackdown.

In a letter published in July, the Constitutional Conduct Group of senior retired civil servants urged Union home minister Amit Shah to take action to "cease needless harassment of organizations serving people of India, especially its most marginalized and disadvantaged sections" in response to the FCRA's relentless targeting of NGOs.

According to ministry sources, almost 7,000 NGOs had their FCRA licenses revoked in the previous four years for breaking rules.

The Commonwealth Human Rights Initiative (CHRI), OXFAM India, the Centre for Policy Research (CPR), and the Centre for Equity Studies (CES) have all had their FCRA licenses revoked or suspended over the previous several months.

Rajesh Mondal I am founder of Press Time Pvt Ltd, a News company. I am also a video editor, content Creator and Full Stack Web Developer. https://linksgen.in/rajesh