The recent revocation of FCRA licenses for three prominent NGOs, just ahead of the renewal deadline, underscores the strict regulatory scrutiny NGOs face in India.
In a surprising move, just before the September 30 deadline for the renewal of Foreign Contribution Regulation Act (FCRA) licenses for NGOs, the Indian government has taken the decision to revoke the licenses of three renowned organizations.
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Bal Raksha Bharat’s FCRA Cancelled
Save The Children is an esteemed UK-based NGO. Their India unit, known as Bal Raksha Bharat, has recently faced the cancellation of their FCRA licence. Reports from the Economic Times revealed that their audited account from March disclosed that they had a sum of Rs 163.18 crore in their bank accounts and an additional Rs 66.66 lakh worth of in-kind contributions for the financial year 2021-22. Having its operations spread across 16 Indian states, the group’s spokesperson confirmed the revocation, although no further insights were provided.
About the Other Two NGOs
The Srinivas Malliah Memorial Theatre is the second organization on this list. It was founded in honour of Ullal Srinivas Malliah, a noted freedom fighter and politician. Their core mission is to provide training in traditional handicrafts, ranging from puppet making, bamboo crafts to embroidery.
SEWA, the third NGO, focuses on activities related to animal husbandry, dairying, and fisheries, particularly in North East Delhi.
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FCRA License: An Overview
NGOs having FCRA licenses are obligated to apply for a renewal of their licenses. This deadline was extended to September 30, 2023, post the FCRA law amendments introduced in September 2020. This year saw many distinguished NGOs successfully renewing their FCRA licenses.
The Ministry of Home Affairs (MHA) has shared that there are currently 16,497 active NGOs holding the FCRA licenses in India. Moreover, 2023 alone witnessed 348 trusts receiving new registrations.
Licenses granted by the Ministry of Home Affairs for FCRA purposes span a period of five years. The evaluation process involves a thorough check of annual returns and the appropriateness of the foreign grants received.
| Name | Detail |
|---|---|
| FCRA Renewal Deadline | September 30, 2023 |
| Total Active NGOs with FCRA | 16,497 |
| Fresh FCRA registrations in 2023 | 348 |
| FCRA License Duration | 5 Years |
| Evaluation Criteria | Annual returns and foreign grants’ legitimacy |
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Past Revocations
It’s noteworthy that this isn’t the first instance of such an action by the ministry. In the past, the FCRA license of YWCA Delhi was also revoked on grounds of fund misdirection. This NGO, which dates back to 1912, operates numerous working women’s hostels in Delhi.
Conclusion
The recent revocation of FCRA licenses for three prominent NGOs, just ahead of the renewal deadline, underscores the strict regulatory scrutiny NGOs face in India. While the move has been surprising for many, it reiterates the government’s commitment to ensuring compliance and the transparent use of foreign funds. Organizations need to be ever-vigilant in maintaining transparency and adhering to the guidelines set forth by the Ministry of Home Affairs.
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