The NGO, which works for ending poverty and social exclusion, has been accused of violating FCRA norms.

New Delhi: The Ministry of Home Affairs (MHA) on Tuesday suspended the foreign funding licence of CARE India, a non-governmental organisation, over alleged violations of the Foreign Contribution (Regulation) Act, 2010.

In the fiscal year 2021-2022, institutional grants accounted for 79% of CSR funding in India, corporate grants contributed 20%, while other sources made up the remaining 1%.

CARE India, which is a part of CARE International Confederation and has been working for the past 70 years with the aim of ending poverty and social exclusion, has been served a notice suspending its FCRA registration for 180 days.

CARE India says it is working on clarifications for the government

In a statement, CARE India said that it has received a notice from the MHA, as per which its FCRA registration has been suspended temporarily for a period of 180 days. “We are working on the clarifications for the government and are confident the temporary suspension will be revoked,” it said.

The NGO also clarified that it has been “serving the country with unwavering commitment and has always complied with regulations to bring holistic and sustainable changes in the areas of health, education, livelihood and disaster response management”.

CARE India is not the first NGO to face FCRA action

However, this is not the first-of-its-kind case. Some prominent NGOs including Oxfam India and Centre for Policy Research (CPR) have been denied licence over similar allegations.

According to the auditor’s certificate for CARE India for 2021-22, the NGO, which received Rs 377.5 crore during 2021-22 as foreign contributions, was subjected to a tax ‘survey’ under Section 133A of the Income Tax Act, 1961. Last year, Oxfam’s request for renewal of FCRA licence was rejected over alleged FCRA violations. Meanwhile, CPR’s FCRA registration was also suspended in February.

CARE India may have to scale down its operations in India

In 2012-13, CARE India had received foreign contributions of Rs 28.3 crore without obtaining prior permission from MHA, as per the auditor. These funds were received in a bank account meant for local funds and the foreign inward remittance certificates indicate these funds were received for business and management consultancy and public relations. This, as per the auditor, violates Section 17(1) of FCRA, though a condonation plea was later filed with MHA and Rs 5.6 crore penalty provided for in the company’s accounts in 2018.

The NGO might also be looking at minimizing its operations in the country in the coming days, reported TOI citing a source. However, no official clarification has been issued by the organization on the same.

Grant Source

In 2021-2022, 79% of CSR funds in India came from institutional grants, 20% came from corporate grants, and 1% came from other sources.

Here is a more detailed breakdown of the sources of CSR funds in India:

Institutional grants: These are grants that are given to CSR initiatives by institutions such as foundations, trusts, and government agencies.
Corporate grants: These are grants that are given to CSR initiatives by corporations.
Other sources: These include individual donations, crowdfunding, and in-kind donations.