Latest news with #ForeignContributionRegulationAct
News18
6 days ago
- Politics
- News18
Not Every NGO Receiving Foreign Funds Must Be Viewed With Suspicion: Madras High Court
Last Updated: The court set aside MHA's decision to deny FCRA licence renewals to two Chennai-based NGOs—Ellen Sharma Memorial Trust and Sharma Centre for Heritage Education. The Madras High Court recently observed that not every institution receiving foreign contributions should be approached with suspicion. 'Unless there are serious violations of misuse of foreign contribution, the authorities must deal with it with an open mind," court said. Highlighting the contributions of the Indian diaspora towards education and social welfare, the court set aside the Ministry of Home Affairs' (MHA) decision to deny FCRA licence renewals to two Chennai-based NGOs—Ellen Sharma Memorial Trust and Sharma Centre for Heritage Education. The NGOs, which have been working since the 1980s to provide education and health services to underprivileged children, had been denied renewal of their registrations under the Foreign Contribution Regulation Act (FCRA), 2010 in December 2021. The denial was based on the movement of foreign funds among three sister NGOs that share premises and some common members, which the MHA termed a violation under amended Section 7 of the Act. However, the bench of Justice N Anand Venkatesh found that these fund transfers occurred transparently between entities that were all duly registered under the FCRA, and that the funds came from a single donor family based abroad. Court noted that the amendment requiring prior approval for such transfers came into effect only in late September 2020 and that the alleged violation, even if accepted, pertained to a short five-month window and involved no misuse or diversion of funds. Importantly, the court revealed that the Intelligence Bureau's sealed report—which the MHA had relied upon—contained no evidence of personal gain or improper use of contributions. Instead, it showed that the donations had supported educational institutions and even helped purchase farmland to support sustainability efforts. 'There is nothing to show that there is any misuse of funds," the court observed. Court further pointed out that both NGOs had responded to all government queries and had provided bank statements and clarifications. The denial orders, however, contained no reasons—violating principles of natural justice. Court also rejected the MHA's argument that reasons need not be provided when registration is refused. 'If such transfer of foreign contributions has not resulted in diversion of funds or misuse of funds for personal use, violation of the provisions of Section 7 of the Act should not be put against both the petitioner trust as well as the appellant to deny the renewal of registration," the court added, calling the ministry's approach unnecessarily hyper-technical. Court concluded that where individuals of Indian origin settled abroad wish to 'give something back" through charitable support, such efforts should not be thwarted lightly, and if this opportunity is denied to them, it must have strong reasons. It, therefore, directed the MHA to process the renewal applications of the Trust and grant the FCRA registrations within four weeks.
Scroll.in
28-06-2025
- Politics
- Scroll.in
Government need not suspect NGOs only because they receive foreign funds: Madras High Court
The government need not treat non-governmental organisations with suspicion merely because they receive foreign funding, the Madras High Court said on Friday. 'Just because some institutions run with the aid of foreign contribution, it is not necessary to look at the institutions like that of the petitioners with suspicion unless there are materials to show that such foreign contribution is being misused and it is being used against public interest/national interest,' the court said. Justice Anand Venkatesh said that several persons of Indian origin living abroad donate money to help India, and that alone should not raise concerns. The court was hearing a petition by two sister organisations, the Sharma Centre for Heritage Education and the Ellen Sharma Memorial Trust, challenging the Ministry of Home Affairs' decision to deny the renewal of their registration under the Foreign Contribution Regulation Act. Non-profit organisations that wish to receive funds from abroad need to register themselves under the Foreign Contribution Regulation Act. The trusts said that they had been working since 1982 to improve children's education and health and relied heavily on foreign donations for their work that includes setting up schools and health centres in and around Chennai. The government argued that the organisations had violated Foreign Contribution Regulation Act rules by moving funds among themselves without permission. However, the court found that the rejection letter did not clearly explain the reasons and that the trust had not been properly informed about the rule changes made in 2020. The court set aside the government's rejection and ordered the authorities to process the Foreign Contribution Regulation Act renewal application within four weeks. In 2020, the Union government amended the Foreign Contribution Regulation Act to extend tighter control over how non-profit organisations use foreign funds. Since then, several NGOs have alleged that the government has been using the law to target organisations they do not agree with. Among organisations whose licences under the Act were cancelled or not renewed were non-profits working on human rights, such as Oxfam India and Commonwealth Human Rights Initiative, and think tanks such as Centre for Policy Research.
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Business Standard
25-06-2025
- Business
- Business Standard
MHA extends validity of NGOs whose licences are expiring till Sept 30
The Ministry of Home Affairs has extended the validity of registration certificates for all NGOs registered under the Foreign Contribution Regulation Act (FCRA) whose licences are set to expire on June 30 and for which renewal applications are pending, officials said on Wednesday. This extension will remain in effect until September 30, or until the renewal application is processed, whichever is earlier, an official statement said. The ministry also announced that the validity of FCRA entities whose five-year licences expire between July 1 and September 30, and who have submitted or will submit renewal applications before their licences expire, will be extended until September 30 or until their renewal applications are processed, whichever happens first. "The validity of registration certificates of such entities whose validity was extended till 30.06.2025 in terms of the Public Notice dated 28.03.2025 and whose renewal application is pending, will stand extended till 30.09.2025 or till the date of disposal of the renewal application, whichever is earlier," the notification said. The home ministry advised all FCRA-registered NGOs to note that if their renewal application is refused, the validity of their registration certificate will be considered expired as of the date of the refusal. Consequently, these NGOs will not be eligible to receive or utilise any foreign contributions after that date. All NGOs must be registered under the FCRA to receive foreign contributions. Furthermore, any financial transactions in FCRA accounts or FCRA utilisation accounts of NGOs or associations whose FCRA registration has been cancelled, ceased, or whose validity has expired will be considered a violation of the FCRA and could result in penal action. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Time of India
25-06-2025
- Business
- Time of India
MHA extends validity of NGOs whose licences are expiring till Sept 30
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Ministry of Home Affairs has extended the validity of registration certificates for all NGOs registered under the Foreign Contribution Regulation Act (FCRA) whose licences are set to expire on June 30 and for which renewal applications are pending, officials said on extension will remain in effect until September 30, or until the renewal application is processed, whichever is earlier, an official statement ministry also announced that the validity of FCRA entities whose five-year licences expire between July 1 and September 30, and who have submitted or will submit renewal applications before their licences expire, will be extended until September 30 or until their renewal applications are processed, whichever happens first."The validity of registration certificates of such entities whose validity was extended till 30.06.2025 in terms of the Public Notice dated 28.03.2025 and whose renewal application is pending, will stand extended till 30.09.2025 or till the date of disposal of the renewal application, whichever is earlier," the notification home ministry advised all FCRA-registered NGOs to note that if their renewal application is refused, the validity of their registration certificate will be considered expired as of the date of the these NGOs will not be eligible to receive or utilise any foreign contributions after that NGOs must be registered under the FCRA to receive foreign any financial transactions in FCRA accounts or FCRA utilisation accounts of NGOs or associations whose FCRA registration has been cancelled, ceased, or whose validity has expired will be considered a violation of the FCRA and could result in penal action.
Hans India
23-06-2025
- Politics
- Hans India
Cricketers rally in support of RDT, demands restoration of FCRA clearance
Anantapur: In a rare show of solidarity, cricketers from across Anantapur district organised a massive rally in support of Rural Development Trust (RDT), demanding immediate restoration of its FCRA (Foreign Contribution Regulation Act) license. The rally, held in Anantapur town, was led by the district's senior and junior cricketers, women players, Ranji cricketers (past and present), and members of the cricketing fraternity. Starting from Clock Tower, the rally proceeded through Saptagiri Circle, Iron Bridge, Sangamesh Circle, and concluded at the Vincent Ferrer statue near the Collector's Office, where a public meeting was held. Participants raised slogans like 'Save RDT' and called on the Central Government to reinstate the FCRA approval to allow RDT's services to continue in the region. Speaking at the event, District Cricket Association President Prakash Reddy said it was everyone's collective responsibility to protect RDT, which has been serving the people of Anantapur for over 55 years. Former Association President Pagadala Mallikarjuna added that the organisation had played a crucial role in improving the lives of people across communities and urged both the Central and State Governments to support RDT's continued presence. Macha Ramalinga Reddy, who chaired the rally, thanked participants and emphasized that the protest movement would intensify until the FCRA license was restored. IPL cricketer Vijay Kumar echoed these sentiments, stating that it was the moral responsibility of the community to stand by an institution that has done so much for the district. Prominent figures who participated included Deputy Mayor Koganti Vijay Bhaskar Reddy, Narpa Satyanarayana Reddy, Sha Buddin, and Prasad Reddy, along with several former Ranji players like Suresh, Fayaz, Shahshavali, Murali, and Sardar. Women cricketers, including Radhika, Latha, Gausia, Dhanalakshmi, and Manjula, along with coaches and district-level sports officials, were also present. Current Ranji players Vinay Kumar, Macha Datta Reddy, Veerareddy, and Deepak marched at the front, paying floral tribute at the statue of Father Vincent Ferrer, marking the rally's emotional and symbolic start.
