Back to Foreign Hand

CONTEXT: Government wielding of the Foreign Contribution Regulation Act (FCRA) as a blunt instrument makes it look insecure, shrinks vital space for Non-Government Organisations (NGOs) and civil society. 

About the Issue

• India joined Russia in an ignoble league of nations from which the global human rights organisation, Amnesty International, has ceased operations. 

• Amnesty International is aggrieved by the freezing of its accounts by The Enforcement Directorate.
• The Union Ministry of Home Affairs has accused the outfit of financial impropriety.

Issues with Foreign Contribution Regulation Act (FCRA):

• FCRA of 1976 is an Emergency-era law, used to regulate foreign funding of political parties, electoral candidates, judges, newspaper publishers, and even cartoonists.
• In 2010, the ambit of the law was expanded to include “any organisation of political nature”, allowed the government to scrutinise any foreign-funded organisation that could be critical of it.

• This definition includes trade unions, women’s & civil rights outfits, farmers’ groups & youth forums.
• In 2012, at least three NGOs lost their licence in the wake of the protest against the Kundankulam Nuclear Power Plant.

• An amendment in 2016 made it incumbent on NGOs to renew the FCRA licence every five years, which was permanent earlier.

• Deploying the false binaries: of development vs environment, civil rights vs national interest, the Centre has increased its stranglehold on civil society activism. 

• In 2020, further restrictions have been placed on the use of foreign funds by non-profits.
• At least 10,000 NGOs have, reportedly, lost their licence.

Conclusion: 

• The involvement of NGOs in grassroots activities means they can raise the uncomfortable questions, hold the government to account, enforce corporate responsibility.

• The government needs to engage with civil society groups and not label them as opponents or disruptors.