NGOs vs. GoI: The Conflicts and Scrutinies

Registration under Foreign Contribution Regulation Act (FCRA)


From UPSC perspective, the following things are important :

Prelims level: FCRA

Mains level: Money laundering and terror financing

The Union Home Ministry has granted FCRA registration to the famous Gurdwara Harmandir Sahib, or the Golden Temple, in Amritsar, enabling it to receive foreign donations.

Foreign Contribution Regulation Act

  • The Foreign Contribution (Regulation) Act, 2010 is an act to regulate the acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies
  • It prohibits acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto
  • The central government has the power to prohibit any persons or organizations from accepting foreign contribution or hospitality if it is determined that such acceptance would likely “affect prejudicially”

(i) the sovereignty and integrity of India,

(ii) public interest,

(iii) freedom or fairness of election to any legislature,

(iv) friendly relations with any foreign State, or

(v) harmony between religious, racial, social, linguistic or regional groups, castes or communities

Premise for the FCRA

  • Government of India enacted the Foreign Contribution (Regulation) Act (FCRA) in the year 1976 with an objective of regulating the acceptance and utilization of foreign contribution.
  • Any association, non-government organisation (NGO) or registered society requires FCRA registration to receive foreign donations for specified purposes.
  • The act was majorly modified in 2010 with several amendments because many NGOs were found using illegal use of foreign funding.

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