Home ministry cracks down on NGOs misusing foreign contributions post FCRA expiry | India News

NEW DELHI: The home ministry on Tuesday warned NGOs of penal action if they have been receiving and/or utilising foreign contributions after their FCRA certificate has been cancelled or its validity expired.
In a notification, the ministry said all NGOs receiving foreign funds have to be mandatorily registered or granted prior permission under the Foreign Contribution Regulation Act, 2010 (FCRA) and must utilise such funds only for the purposes they were received.
Besides, NGOs who are granted FCRA registration certificate must renew it within six months before the expiry of the validity of such certificate. If renewal is not applied for and their registration ceases to exist, they cannot receive or utilise foreign contribution, the ministry further pointed out.
“However, instances have come to notice to this ministry where credit or debit of the FC (Foreign Contribution) has been noticed into the accounts of the NGOs/ associations who have not been granted registration/ prior permission/ renewal under the FCRA 2010 or such NGOs/ associations whose registration has ceased on expiry of validity period or whose registration has been cancelled,” the notification said.
The home ministry said any receipt or utilisation of the FC without valid registration is a violation of the provisions of the FCRA 2010.
“Accordingly, any transaction in FCRA accounts/ FCRA utilisation accounts of the NGO/ association whose FCRA registration has been cancelled or ceased or validity expired would amount to violation of FCRA 2010 and is liable for penal action,” warned the home ministry.