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26-Jul-2022: Amendment to FCRA

The Central Government has notified the Foreign Contribution (Regulation) Amendment Rules, 2022 vide GSR No. 506(E) on 1st July, 2022  to further  amend  the Foreign Contribution  (Regulation) Rules, 2011 (FCRR, 2011).  These amendments aim to reduce compliance burden on citizens.  As per amended Rule 6 of FCRR 2011, any person receiving Foreign Contribution (FC) more than Rs. 10 Lakh in a financial year from relatives [as defined in section 2(1)(r) of the Foreign Contribution (Regulation) Act, 2010] has to intimate to Central Government within three months of receipt of FC. Earlier such monetary threshold limit was Rs 1 Lakh and intimation to Central Govt. was required within thirty days.

Further, the time limit prescribed in rules 9(1)(e), 9(2)(e) and 17A of FCRR, 2011 for intimation to Central Government has been increased from 15 days to 45 days.

10-Sep-2020: Union Home Minister Shri Amit Shah hails the grant of FCRA clearance to the Sri Harmandir Sahib as a pathbreaking and historic decision

Union Home Minister Shri Amit Shah today hailed the grant of FCRA clearance to the Sri Harmandir Sahib as a pathbreaking and historic decision.

Shri Amit Shah said in a tweet, “Sri Darbar Sahib’s divinity gives strength to us. For decades, the Sangat worldwide was unable to serve there. Modi Government’s decision to allow FCRA to the Sri Harmandir Sahib deepens the connect of Seva between the Sangat globally and the Sri Darbar Sahib. A blessed moment!”.

The Union Home Minister also said, “the Prime Minister Shri Narendra Modi ji is blessed that Wahe Guru ji has taken Seva from him. The decision on FCRA at the Sri Harmandir Sahib is a pathbreaking one which will once again showcase the outstanding spirit of service of our Sikh sisters and brothers”.

The Union Ministry of Home Affairs (MHA) on Wednesday, September 9, 2020, granted registration to the Sachkhand Sri Harmandir Sahib, Sri Darbar Sahib, Punjab. This association had applied for registration under the Foreign Contribution Regulation Act (FCRA), 2010 on 27.05.2020. The registration shall remain valid for 5 years from the date of issue.

Before granting registration to Sachkhand Sri Harmandir Sahib, Sri Darbar Sahib, Punjab, the application of this association was examined in accordance with the provisions laid down in FCRA, 2010 and the Foreign Contribution (Regulation) Rules (FCRR), 2011.

Various inputs received from relevant quarters and documents submitted by the association along with the application, established that this association fulfills criteria prescribed under FCRA, 2010 and rules under it.

The association named Sachkhand Sri Harmandir Sahib, Sri Darbar Sahib, popularly known as Golden Temple based at Amritsar, Punjab was created in 1925 under the Sikh Gurdwara Act, 1925 with objectives to offer free Langar to public/devotees round the clock, financial help to poor and needy, students, financial assistance for medical treatment to needy persons and offering services during Natural disasters. The association was receiving domestic donations, to fulfil these objectives. Now, with permission from the MHA, the association is enabled to receive foreign contribution and utilize these contributions for the stated objectives in compliance with provisions of FCRA, 2010.

7-Sep-2020: Government suspends FCRA clearance of 4 Christian groups

Of the six NGOs whose license under the Foreign Contribution Regulation Act (FCRA) was suspended by the Union Home Ministry this year, four are Christian associations. An FCRA licence is mandatory for a non-profit organisation to receive foreign funds.

At least two U.S.-based Christian donors are also under the Ministry’s scanner for funding NGOs and groups here.

Concerns have been raised regarding the impact of U.S.-based evangelical donors including Seventh Day Adventist Church and Baptist Church in regard to Indian associations; a probe is on.

The four Christian groups whose FCRA was suspended are Ecreosoculis North Western Gossner Evangelical in Jharkhand, the Evangelical Churches Association (ECA) in Manipur, Northern Evangelical Lutheran Church in Jharkhand and New Life Fellowship Association (NLFA) in Mumbai. The reasons for the suspension or violation were not specified.

The Bajrang Dal, the youth wing of the Vishwa Hindu Parishad (VHP), had obstructed prayer meetings organised by the NLFA in Mumbai in April and September last year. The Hindu religious group alleged that the meeting was a pretext for religious conversion and later submitted a complaint to the police.

The FCRA license of NLFA was suspended on February 10, according to Home Ministry data. According to the NLFA’s website, the group began operations in India in the mid-sixties after the arrival of missionaries from the New Life Churches of New Zealand in 1964.

The Evangelical Churches Association (ECA) was founded in 1952 in Manipur. Its origins can be traced to a Welsh Presbyterian missionary who visited in 1910.

According to the website of Ecreosoculis North-Western Gossner Evangelical, its origin is rooted in the development of the Gossner mission of Germany in Chhotanagpur region.

The Northern Evangelical Lutheran Church was established in 1987 and is part of a global communion of 148 churches in the Lutheran tradition, representing over 77 million Christians in 99 countries.

Any organisation, association or NGO in India cannot receive foreign funds if they do not have a license under the FCRA, which is regulated by the Home Ministry. Suspension of FCRA license means that the NGO can no longer receive fresh foreign funds from donors pending a probe by the ministry.

The two other organisations whose license was suspended are the Rajnandgaon Leprosy Hospital and Clinics, and the Don Bosco Tribal Development Society.

Earlier in 2017, another powerful U.S.- based Christian donor, Compassion International, was forced to stop operations in India after the ministry found that it funded NGOs that encouraged religious conversions.

The same year, the Home ministry declined to renew the FCRA licenses of two NGOs, which received funds from Bloomberg Philanthropies, founded by U.S. billionaire Michael Bloomberg. Earlier in 2015, Prime Minister Narendra Modi and the former New York mayor had announced a joint initiative to build Smart cities in India that would be aided by Bloomberg Philanthropies.

As of now, there are 22,457 NGOs or associations registered under the FCRA, while the licenses of 20,674 were cancelled and 6,702 are deemed to have expired.

17-Sep-2019: Government notifies new rules for foreign funding of NGOs

The Ministry of Home Affairs has notified new rules for those receiving foreign funding. Now, key functionaries, office bearers and members of NGOs, receiving foreign funds, will have to declare before the government that they were not prosecuted or convicted for converting anyone from one faith to another.

The Ministry has announced in a notification that the changes in the Foreign Contribution (Regulation) Act, 2010 and Rules, 2011 (FCRA), has been made. Any individual receiving a personal gift valued up to Rs 1 lakh need not inform the government about it anymore.

Key Highlights

  • Every member of an NGO must also now, under oath, through an affidavit, certify that they have never been involved in “diverting” foreign funds or propagating “sedition” or “advocating violent means”.
  • Earlier, the applicant or director-level person was to given this declaration but now all members of the NGO need to be given this declaration.
  • Earlier, as per the market value of the gift item in India was Rs. 25,000, now it has been raised to Rs. one lakh.
  • If any individual, from NGO, hospitalized during a foreign visit, he/she has to be intimated the government within one month.

FCRA: Government of India enacted the Foreign Contribution (Regulation) Act (FCRA) in the year 1976 with an objective of regulating the acceptance and utilization of foreign contribution and foreign hospitality by persons and associations working in the important areas of national life.

The act was majorly modified in 2010 with several amendments because many NGOs were found using illegal use of foreign funding. In 2016 license of about 20,000 NGOs were cancelled after reviewing their work.