Financial Assistance to NGOs

IndiaCSR News Network

NEW DELHI: There are intelligence inputs of some organizations diverting funds for purposes other than the permitted use of foreign funds. On the basis of the complaints of various violations of FCRA, 24 cases have so far been referred to CBI and 9 cases have been referred to State Police for investigation. In 2011-12 registrations of 4138 associations under FCRA were cancelled due to non-submission of Annual Returns during 2006-07 to 2008-09. The list of the such associations has been posted on public domain of Foreigners Division, Ministry of Home Affairs website.

India-Sanitation-Summit-Sanitation-for-All-Toilet-First-6-Feb-2015-New-Delhi-300x180The Government monitors the receipt and utilisation of foreign contribution received by any ‘person’ including Non-Governmental Organisations in the country in terms of the Foreign Contribution (Regulation) Act, 2010 and the Rules framed under the Act.

The FCRA, 2010 provides for NGOs to receive foreign funds after registration or prior permission. Every application of NGOs for registration or granting Prior Permission is decided with inputs from the concerned security agencies. The NGOs, who have been registered or granted prior permission for receiving foreign funds, are required to submit annual returns of accounts. These are scrutinized and wherever required, physical inspection is conducted. Based on the findings of the inspection team, appropriate action is taken.

The organizations receiving foreign contribution are required to submit Annual Accounts for each financial year within a period of nine months from closure of the year i.e. by 31st December. Such Annual Accounts are to be submitted in the prescribed format duly audited by a Chartered Accountant. FCRA provides for a reporting mechanism by the recipients of foreign contribution as well as by the Banks.

This was stated by Minister of State in the Ministry of Home Affairs Shri Kiren Rijiju in Lok Sabha today.



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