FCRA (Syllabus: GS Paper 2 – Social Justices)

News-CRUX-10     8th February 2024        

Context:The Central Bureau of Investigation (CBI) registered a case of alleged

Foreign Contribution (Regulation) Act (FCRA) violation against human rights activist Harsh Mander and his NGO Centre for Equity Studies (CES). .

Foreign Contribution (Regulation)Act (FCRA):

  • About: Regulates the receiving and use of foreign contributions by individuals and corporations established in India.
  • Established in: The Foreign Contribution (Regulation) Act, 2010 has come into effect from 2011.
  • Objectives: The law sought to regulate foreign donations to individuals and associations so that they functioned “in a manner consistent with the values of a sovereign democratic republic.
  • Apply to:

oCitizens of India outside India.

oAssociate branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India.

  • FCRA requires every person or NGO seeking to receive foreign donations:

oRegistered under the Act.

oTo open a bank account for the receipt of the foreign funds in State Bank of India, Delhi.

oTo utilize those funds only for the purpose for which they have been received and as stipulated in the Act.

oThey are also required to file annual returns.

oThey must not transfer the funds to another NGO.

  • The Act prohibits the receipt of foreign funds:

oBy candidates for elections.

oJournalists or newspaper and media broadcast companies.

oJudges and government servants.

oMembers of legislature and political parties or their office-bearers.