Government cancels FCRA of 2,406 NGOs

In a fresh move, the government has further cancelled the licences of 2,406 non-governmental organisations (NGOs) across the country, which includes entities that run schools and hospitals.

In the earlier rounds of scrutiny this year, licences of nearly 13,470 NGOs were cancelled for alleged violation of FCRA.

The primary objective of the Act has been to regulate the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in important areas of national life. The focus of the Act is to ensure that foreign contribution is not utilized to affect or influence electoral politics, public servants, judges and other people working in important areas such as journalism, printing and publishing newspapers, etc.

The Union Ministry cited the following reasons for issuing the notice:

  • Failure to file annual returns
  • Accepting funds from countries such as Palestine, Paraguay & Maldives
  • Failure to comply with the new rules of the Act
  • Foreign funding to political organizations
  • Possible funding towards activities detrimental to national interest
  • Failure to submit income and expenditure statements

Here are some tips to ensure that the NGO complied with the statutory regulations for FCRA:

  • Visit the Ministry of Home Affairs and check if your name was on the list
  • If your name appears in the list despite having submitted your papers, please write to the Ministry with documentary proof and re- submit them to all concerned authorities.

Due to these recent occurrences, we strongly suggest that NGOs contact their donors and auditors to ensure that they are in compliance with the new FCRA regulations.

In order to avoid such instances, we recommend that NGOs should submit their annual report in Form FC-6, accompanied by an income and expenditure statement, receipt and payment account, balance sheet etc. for every financial year beginning on the 1st day of April within nine months of the closure of the financial year.

For a state-wise list of NGOs whose FCRA has been cancelled, view this link.