Recently, news was abuzz with the Union Ministry of Home Affairs suspending licenses granted under the Foreign Contribution Regulation Act (FCRA), 2010 to six Non-Governmental Organisations (NGOs). This suspension signifies these NGOs can no longer procure fresh foreign funds from donors until a probe by the Home Ministry is concluded.
Impacted Organizations and Past Incidents
Of the six NGOs, four are Christian associations like Ecreosoculis North Western Gossner Evangelical in Jharkhand, Evangelical Churches Association in Manipur, Northern Evangelical Lutheran Church in Jharkhand, and New Life Fellowship Association in Mumbai. The other two include Rajnandgaon Leprosy Hospital and Clinics, Chhattisgarh, and Don Bosco Tribal Development Society, Tamil Nadu. The reasons for their suspension have not been specified by the government. However, this isn’t the first time such an event has occurred. In 2017, USA-based donor Compassion International was forced to cease operations in India due to their funding towards NGOs involved in religious conversion activities.
Foreign Contribution Regulation Act (FCRA), 2010
The Foreign funding of NGOs in India is regulated under the FCRA act, enforced by the Ministry of Home Affairs. This act ensures that the recipients of foreign contributions use them appropriately as per the stated purpose for which the fund was obtained. Under this Act, organizations need to register themselves every five years.
NGO’s in India and Their Influence
Non-Governmental Organizations, or NGOs, are groups of civilians involved in diverse activities including charitable, social, political, religious, or other interests. They play a vital role in implementing government schemes at the grassroots in India. NGOs can be registered under various acts like the Indian Societies Registration Act, 1860, Religious Endowments Act, 1863, Indian Trusts Act, etc. According to a government-commissioned study in 2009, India perhaps has the most number of active NGOs globally.
Foreign Funding and Legal Controversies
The FCRA Act restricts funding receipt from foreign sources to NGOs active in India. It disallows foreign contribution for any activities deemed detrimental to national interest. The Act empowers the government to withdraw permission on the grounds that the donation received by the NGO will negatively impact public interest or the state’s economic interest. However, there is lack of clarity on what constitutes “public interest”.
This Act has consequential impacts on both the right to free speech and freedom of association under Articles 19(1)(a) and 19(1)(c) of the Constitution. By permitting only certain political groups to receive foreign donations and disallowing others, it can induce biases in the government’s favor.
NGO Censorship and Human Rights Violations
NGOs often need to carefully phrase their criticism of the regime as excessive criticism could lead to potential harm. Regulatory norms declared by FCRA can reduce critical voices branding them against public interest, resulting in self-censorship. In 2015, the Supreme Court struck down Section 66A of the Information Technology Act due to its potential misuse and discouragement of free speech.
Moreover, violating the right to freedom of association, which is part of the Universal Declaration of Human Rights (Article 20), constitutes a human rights violation. In April 2016, the UN Special Rapporteur on Rights to Freedom of Peaceful Assembly and Association conducted an analysis of FCRA, 2010. It concluded that restrictions invoked under FCRA in the name of public interest and economic interest do not meet the legitimate restrictions criteria. The terminology was deemed vague, providing the state with excessive discretionary powers to use in an arbitrary way. With corruption-prone NGOs requiring regulation, there is a need for clarity on terms like public interest.