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Government warns NGOs of penal action for receiving foreign funds without FCRA registration

Posted 22 Jan 2025

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Ministry of Home Affairs (MHA) Warning on Foreign Funds

The Union Home Ministry has issued a warning to Non-Government Organisations (NGOs) regarding the receipt of foreign funds without proper registration under the Foreigners Contribution Regulation Act, 2010 (FCRA).

FCRA Registration Requirements

Mandatory Registration: NGOs must have FCRA registration to accept foreign donations.
Purpose Specific: The foreign contribution (FC) must be used for the purpose for which the NGO is registered or has prior permission.
Certificate or Permission: No person can accept FC without a registration certificate or prior government permission.

Renewal and Compliance

Renewal Requirement: Section 16 requires renewal of the registration certificate six months before its expiry.
Regulation Rules: As per the Foreign Contribution (Regulation) Rules, 2011, entities without a valid registration cannot receive or utilize FC.
Non-compliance Instances: Some NGOs were found to have transactions without registration, permission, or post-expiry of registration.

Penal Actions

Any receipt or utilization of FC without a valid FCRA registration is a violation of the Act, leading to penal actions against the non-compliant NGOs.

Tags:

NGOs FCRA, 2010 Foreign Contributions