Govt may tighten foreign contribution regulations

The government will replace or make amendments to the Foreign Contribution (Regulation) Act (FCRA), 1976, to ensure that foreign funds are not used for purposes other than those stated by the organisations receiving them.

NEW DELHI: The government will replace or make amendments to the Foreign Contribution (Regulation) Act (FCRA), 1976, to ensure that foreign funds are not used for purposes other than those stated by the organisations receiving them.

This was announced today by home minister Shivraj Patil while inaugurating a two-day seminar on FCRA, being organised jointly by the home ministry and Institute of Chartered Accountants.

He said the government would set up a decentralised structure to put in place a more user-friendly and approachable administrative machinery so that organisations seeking foreign contribution will not be required to come to the national capital to get themselves registered. While emphasising that the proposed law would aim at facilitating the working of NGOs, Patil said, “At the same time, it will try to ensure that foreign contribution is used for the purpose for which it has been received and is not diverted to some other use.”

The home minister called upon the participants in the seminar to freely express their views and contribute towards improving the bill. In his address, union home secretary V K Duggal said sometimes, it is found that from FCRA angle, NGOs commit some procedural lapses. “This may be due to lack of proper understanding and familiarity with the Act and rules,” he said and expressed hope that the deliberations on various issues pertaining to FCRA would create the desired awareness.
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