Govt set to amend FCRA, to make Aadhaar mandatory for NGOs seeking foreign donations

The Centre on Sunday introduced a Bill in the Lok Sabha seeking to make Aadhaar mandatory for all office-bearers of an NGO seeking foreign donations, amid Opposition allegations using the changes to the law to target detractors.

The Foreign Contribution (Regulation) Amendment Bill, introduced by Minister of State for Home Nityanand Rai, seeks to streamline the provisions of the law by strengthening the compliance mechanism to enhance transparency and accountability in receipt and utilisation of foreign contributions.

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Congress leader Adhir Ranjan Chowdhury opposed the introduction of the bill contending that it sought to give unnecessary powers to the Centre to suppress the Opposition.

Trinamool Congress member Saugata Ray claimed that the bill was an attempt to stop social organisations working in tribal and rural areas from getting foreign donations.

Rai sought to allay apprehensions voiced by the Opposition, quoting the then Home Minister P Chidambaram, who had moved the FCRA Bill in 2010 citing non-compliance by more than half of the registered NGOs when it came to submitting details of foreign donations.

Rai said Chidambaram had told the House that of 40,000 odd NGOs registered under the FCRA, more than half did not submit details about foreign donations or furnish accounts for audit.

The minister said rejected allegations of discrimination against political opponents, insisting that the bill would usher in a transparent process on seeking accountability.

The proposed amendments also seek to bar public servants from receiving foreign funding. It also seeks to limit the use of foreign funds received under the FCRA for administrative purposes from the current limit of 50% to 20%.

The government had cancelled certificates of registration of more than 19,000 NGOs between 2011 and 2019 for failing to meet basic statutory compliances.

The bill also seeks to empower the government to ask a violator to not use the funds by holding a “summary inquiry”.

After the amendments are passed, no organisation will be able to transfer foreign contribution to any association/person under Section 7 of the FCRA.

“Every person who has been granted a certificate or prior permission for foreign funding shall receive foreign contribution only in an account designated as “FCRA Account” which shall be opened by him in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify and for other consequential matters relating thereto,” the proposed amendment says.