The Commonwealth Human Rights Initiative (CHRI) has disputed the suspension of its Foreign Contribution Regulation Act (FCRA) certificate by The Ministry of Home Affairs (MHA) for 180 days, citing violations of various provisions of the FCRA Act.
Background: Understanding the Foreign Contribution (Regulation) Act (FCRA), 2010
The FCRA act regulates foreign funding of individuals in India and is supervised by the Ministry of Home Affairs. Under this act, individuals may accept foreign contributions without MHA’s permission up to Rs. 25,000. The act seeks to ensure that recipients of foreign contributions adhere to their reported intentions for the acquired funds. Organizations must renew their registrations every five years to stay within the regulations of this act.
Key Amendments in 2020
Changes introduced in the Foreign Contribution (Regulation) Amendment Act in 2020 included a ban on public servants from receiving foreign contributions, prohibition of transferring foreign contributions to unregistered individuals, mandatory Aadhaar number requirement for all office bearers, and setting restrictions on the use of foreign contribution for administrative purposes.
Additional Regulations
Additional key guidelines stipulate that donations in Indian rupees (INR) given by foreigners should be treated as foreign contributions. Compliance with the international financial watchdog Financial Action Task Force (FATF)’s good practices was mandated for NGOs. They are also required to report any suspicious activities of a donor or recipient and conduct due diligence of employees during recruitment.
CHRI’s Objections
CHRI argues the suspension order contradicts the FCRA act’s framework and was passed without any inquiry initiation. They consider the order based on incorrect facts and breaching fundamental principles of natural justice.
Concerns Around FCRA
Critics point out that the FCRA’s scope is undefined when it comes to activities detrimental to national or economic interest. They also highlight that FCRA’s restrictions have serious implications on freedom of expression and association under Articles 19(1)(a) and 19(1)(c) of the Constitution.
About CHRI and Commonwealth
The CHRI, headquarter in New Delhi, is an independent, non-partisan, international NGO aiming for human rights realisation across the Commonwealth. The Commonwealth is one of the oldest political state associations, originating from countries ruled by Britain. Today, it is a voluntary cooperation-based association of 54 independent and sovereign states, including Rwanda and Mozambique, with no historical British Empire ties.
The Way Forward
Excessive regulations on foreign contributions can impact NGOs’ operations, often instrumental in implementing government schemes at grassroots levels. These organizations fill gaps where government efforts may fall short. Therefore, it’s crucial to balance regulation to prevent misuse of funds without hindering resource sharing essential for the global community’s functioning.