Centre for Policy Research?s FCRA Registration Suspended

Centre for Policy Research’s FCRA Registration Suspended
 

News: Recently, The MHA suspended the Foreign Contribution Regulation Act (FCRA) license of the Centre for Policy Research (CPR) following prima facie inputs regarding the violation of funding norms.
 

About CPR:
 The Centre for Policy Research (CPR) has been one of India’s leading public policy think tanks since 1973.
 CPR is a non-profit, non-partisan, independent institution dedicated to conducting research that contributes to high quality scholarship, better policies, and a more robust public discourse about the issues that impact life in India.
 

What is FCRA?
 The FCRA was enacted during the Emergency in 1976 amid concerns that foreign powers were interfering in India’s affairs by pumping money into the country through independent organizations. The law sought to regulate foreign donations to individuals and associations.
 An amended FCRA was enacted in 2010 to “consolidate the law” on the utilization of foreign funds, and “to prohibit” their use for “any activities detrimental to the national interest”.
 The law was amended again in 2020, giving the government tighter control and scrutiny over the receipt and utilization of foreign funds by NGOs.
 

Key Provisions:
 The FCRA requires every person or NGO wishing to receive foreign donations to be registered under the Act.
 To open a bank account for the receipt of foreign funds in State Bank of India, Delhi is mandatory.
 These funds can be utilised only for the purpose for which they have been received, and as stipulated in the Act.
 The receivers of foreign funds are also required to file annual returns, and they must not transfer the funds to another NGO.
 

How are registrations granted?
 FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
 MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant and accordingly processes the application.
 The MHA is required to approve or reject the application within 90 days — failing which it is expected to inform the NGO of the reasons for the same. Once granted, FCRA registration is valid for five years.
 NGOs are expected to apply for renewal within six months of the date of expiry of registration. In case of failure to apply for renewal, the registration is deemed to have expired.
 

When is registration cancelled or suspended?
 The government reserves the right to cancel the FCRA registration of any NGO if it finds it to be in violation of the Act.
 Registration can be cancelled for a range of reasons including, if “in the opinion of the Central Government, it is necessary for the public interest to cancel the certificate”.
 Once the registration of an NGO is cancelled, it is not eligible for re-registration for three years.

The Act prohibits Foreign Funds for?
o Candidates for elections
o Judges and government servants
o Members of the legislature and political parties or their officebearers
o Organisations of a political nature
o Journalists or newspaper and media broadcast companies