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'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Officials of Foreigners Division of the Ministry of Home Affairs (MHA) have been questioned by CBI for accepting bribes to give clearances under the Foreign Contribution (Regulation) Act (FCRA), 2010.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The FCRA bars non-registered NGOs from accepting foreign contributions. Many NGOs use illegal measures to get permission.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many NGOs have been denied renewal for alleged violation of the FCRA and others have not applied for renewal before the due date.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The law</strong></span></span></p>
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<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The law was enacted in 1976 to prevent foreign powers from pumping money into the country to interfere in internal affairs.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The law sought to regulate foreign donations to individuals and associations so that they functioned according to rules framed by the government.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">An amendment was carried out in 2010 to prohibit their use for any activities detrimental to national interest.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Latest amendment was made in 2020, which gave the government tighter control and scrutiny over the receipt and utilization of foreign funds by NGOs.</span></span></p>
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<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>New restrictions</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NGOs receiving foreign funding must be registered under the Act</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">They need to open a bank account for the receipt of the foreign funds in State Bank of India, Delhi</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The funds have to be utilized only for the purpose for which they have been received</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Receiving entities must not transfer the funds to another NGO</span></span></p>
</li>
</ul>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Prohibited receivers</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Candidates for elections</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Journalists or newspaper and media broadcast companies</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Judges and government servants</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Members of legislature</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Political parties or their office-bearers</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Organizations of a political nature</span></span></p>
</li>
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<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Applying for FCRA</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NGOs must apply for registration online in a prescribed format with the required documentation. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Intelligence Bureau makes enquiries to ascertain if the applied NGO follows all norms needed for approval.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Within 90 days, the MHA must approve or reject application. If not then they must inform the NGO for the reasons.</span></span></p>
</li>
</ul>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Validity</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">FCRA registration once granted is valid for five years. The NGO must apply for re-registration within six months of expiry.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Cancellation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Registrations can be cancelled anytime if audit finds irregularities in the finances of an NGO in terms of misutilisation of foreign funds.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">If registration of an NGO is cancelled by MHA, it is not eligible for re-registration for next three years. The orders can be challenged in High Courts.</span></span></p>
</li>
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'description' => '<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Issue</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Officials of Foreigners Division of the Ministry of Home Affairs (MHA) have been questioned by CBI for accepting bribes to give clearances under the Foreign Contribution (Regulation) Act (FCRA), 2010.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Background</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The FCRA bars non-registered NGOs from accepting foreign contributions. Many NGOs use illegal measures to get permission.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Details</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Many NGOs have been denied renewal for alleged violation of the FCRA and others have not applied for renewal before the due date.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>The law</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The law was enacted in 1976 to prevent foreign powers from pumping money into the country to interfere in internal affairs.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The law sought to regulate foreign donations to individuals and associations so that they functioned according to rules framed by the government.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">An amendment was carried out in 2010 to prohibit their use for any activities detrimental to national interest.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Latest amendment was made in 2020, which gave the government tighter control and scrutiny over the receipt and utilization of foreign funds by NGOs.</span></span></p>
</li>
</ul>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>New restrictions</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NGOs receiving foreign funding must be registered under the Act</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">They need to open a bank account for the receipt of the foreign funds in State Bank of India, Delhi</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The funds have to be utilized only for the purpose for which they have been received</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Receiving entities must not transfer the funds to another NGO</span></span></p>
</li>
</ul>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Prohibited receivers</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Candidates for elections</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Journalists or newspaper and media broadcast companies</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Judges and government servants</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Members of legislature</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Political parties or their office-bearers</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Organizations of a political nature</span></span></p>
</li>
</ul>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Applying for FCRA</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">NGOs must apply for registration online in a prescribed format with the required documentation. </span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">The Intelligence Bureau makes enquiries to ascertain if the applied NGO follows all norms needed for approval.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Within 90 days, the MHA must approve or reject application. If not then they must inform the NGO for the reasons.</span></span></p>
</li>
</ul>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Validity</strong></span></span></p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">FCRA registration once granted is valid for five years. The NGO must apply for re-registration within six months of expiry.</span></span></p>
<p style="margin-right:0in"> </p>
<p style="margin-right:0in"><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif""><strong>Cancellation</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,"sans-serif"">Registrations can be cancelled anytime if audit finds irregularities in the finances of an NGO in terms of misutilisation of foreign funds.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">If registration of an NGO is cancelled by MHA, it is not eligible for re-registration for next three years. The orders can be challenged in High Courts.</span></span></p>
</li>
</ul>
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