Voluntary organisations' overseas funds under lens

NEW DELHI: The government will track overseas inflows over Rs 15 lakh to voluntary organisations in the country. It fears the funds may be getting diverted to rogue activities including terror funding. In 2006-07, voluntary organisations received Rs 5,000 crore foreign funds.

Officials from the finance ministry, home ministry and security agencies would form a core team to track all foreign inflows over Rs 15 lakh to voluntary organisations, a highly-placed sources in the government said.

“The team’s target would be to detect uncrupulous transactions and diversion of funds. There would soon be a review and simplification of related provisions of Foreign Exchange Contribution (Regulation) Act (FCRA), applicable in case of foreign funds to voluntary organisations. The government is in the process of amending the FCRA to facilitate inflows of foreign contribution for legitimate voluntary activities and, at the same time, putting a spanner in rogue activities. The Rs 15-lakh cap would be incorporated in the review,” a senior government official, said.

“The move is part of the gobal initiative against terror funding under international anti-money laundering association. India is a member of the alliance and, thus, commited to act as a barrier in curbing illegal fund flow,” he said.

At present, the government does not have a mechanism to monitor working of the voluntary organisations. Aimed at ensuring proper utilisation of funds by voluntary organisations, the government is planning accreditation for such organisations.

On Thurday, Planning Commission deputy chairman Montek Singh Ahluwalia said the government would tighten administrative and penal provisions to discourage misuse of funds and tax concessions by the voluntary organisations. Moreover, voluntary organisations would also be registered by a government-approved independent agency to enable donors find out about the credentials of the organisation before donating funds, he had said.