New Delhi, September 21: The Lok Sabha on Monday passed the The Foreign Contribution (Regulation) Amendment Bill, 2020. The law, once ratified by the President, will make key changes to the Foreign Contribution Regulation Act (FCRA) that was enacted in 2010. The legislation cleared the Parliament's Lower House amid objections raised by the Opposition, which claimed that the law would be used by the government to "target dissent". Golden Temple Gets MHA Nod For FCRA Licence For 5 Years.

What is The FCRA Amendment Bill?

The legislation amends the Foreign Contribution Regulation Act of 2010. The government, while stating its objective behind moving the amendment Bill, had claimed that foreign contributions to non-governmental organisations doubled from the period of 2010 to 2019, with amount being unutilised and inadequately accounted in some cases. This required stringent measures to regulate the flow of foreign funds to NGOs, activists and other individuals based in India.

"The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the said Act," stated the Bill's  statement of objects and reasons.

"Many of them were also found wanting in ensuring basic statutory compliances such as submission of annual returns and maintenance of proper accounts. This has led to a situation where the Central Government had to cancel certificates of registration of more than 19,000 recipient organisations, including non-Governmental organisations, during the period between 2011 and 2019," it further added.

What Are The Amendments Made to the FCRA?

The government has attempted to regulate the flow of foreign funds by introducing a slew of amendments to the FCRA. The amendment Bill has proposed the following key changes:

  • 'Public servants' including legislators, bureaucrats, lawmakers, judges and other officials are barred from receiving foreign contributions.

  • The administrative expenses of an organisation, using foreign funds, needs to be scaled down to 20 percent of the total expenditure. As per the FCRA, 2010, it was 50 percent.

  • Aadhar of the company head and key office-bearers is mandatory for registering the organisation to receive foreign funds.

  • The amendment Bill also reportedly mandates the government to stop utilisation of foreign funds by issuing a "summary enquiry" against the beneficiary organisation.

  • The law also prohibits the transfer of foreign funds to a person who is not registered with the government as eligible to receive contributions.

The Opposition has condemned certain provisions of the FCRA Amendment Bill, calling it an attempt by the government to curtail funding of social organisations working for the upliftment of poor in tribal areas. Their criticism has primarily been centred on the provision that makes Aadhaar mandatory to receive the offshore funds.

"Now we have seen the provisions… (have) increasingly been used against those who speak against the government," said Congress MP Manish Tewari, whereas, Trinamool Congress lawmaker Saugata Roy said the Bill was akin to a  "Big Brother watching".

(The above story first appeared on LatestLY on Sep 21, 2020 06:58 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).