NEW DELHI, JUNE 23: The Union Home Ministry has revised penalties for several violations under the Foreign Contribution (Regulation) Act (FCRA), 2010, and introduced a series of amendments aimed at tightening oversight of foreign funding received by non-governmental organisations (NGOs).
According to gazette notifications issued on Monday, NGOs exceeding the prescribed limit on administrative expenses, engaging in speculative activities, or using foreign contributions for purposes other than those approved will face enhanced penalties. In some cases, penalties will be linked to the amount involved, with recovery of profits earned through unauthorised investments.
The amended rules also require organisations seeking registration or renewal under the FCRA to specify their objectives and areas of operation from a predefined list. Associations will have to disclose their social media accounts and submit detailed activity reports along with annual financial statements.
The government has stipulated that associations with foreign nationals, other than persons of Indian origin, as key functionaries will ordinarily not be considered for registration or prior permission to receive foreign contributions, except in cases specifically approved by the Centre.
Under the revised framework, NGOs must spend at least ₹10 lakh of foreign contributions on approved activities over the previous two financial years to qualify for renewal or avoid cancellation of registration. Organisations operating under prior permission will receive subsequent instalments of foreign funds only after utilising at least 75 per cent of the earlier tranche.
The amendments also broaden the definition of “key functionary” to include directors, partners, trustees and others exercising control over the management of an association. Additionally, organisations receiving funds through intermediary channels will have to disclose the original source of donations.
The government said the changes are aimed at enhancing transparency, accountability and effective monitoring of foreign contributions received and utilised by associations in the country.
