MHA warns NGOs of penal action if foreign funding taken without FCRA registration-OxBig News Network

The home ministry on Tuesday warned NGOs of penal action if they have been receiving and utilising foreign funds without FCRA registration or even after expiry of registration.

In a notification, the ministry said all NGOs receiving foreign funds had to be mandatorily registered under the Foreign Contribution Regulation Act, 2010 (FCRA) and they had to utilise such funds only for the purposes they had been received.

Besides, those who get the FCRA registration certificate must renew it within six months before the expiry of the period of the registration and if not done, their registration ceases to exist and they can’t receive or utilise foreign contribution.

“However, instances have come to notice to this ministry where credit or debit of the FC (Foreign Contribution) has been noticed into the accounts of the NGOs/associations who have not been granted registration/prior permission/renewal under the FCRA 2010 or such NGOs/ associations whose registration has ceased on expiry of validity period or whose registration has been cancelled,” the notification said.

The home ministry said any receipt or utilisation of the FC without valid registration is violation of the provisions of the FCRA 2010.

Accordingly, any transaction in FCRA accounts/FCRA utilisation accounts of the NGO/association whose FCRA registration has been cancelled or ceased or validity expired would amount to violation of FCRA 2010 and is liable for penal action, the home ministry said.