https://www.thenarrativeworld.in/Encyc/2023/9/5/NGOs-and-Foreign-Donations.html
Major General Mrinal Suman
Foreign-funded Non-Governmental Organisations (NGOs) have always been in the news,
albeit for wrong reasons. Most of them are accused of corruption, mismanagement of funds,
absence of a well-defined mission, lack of a consistent plan, opacity in functioning and political
agenda. Some NGOs have been known to have indulged in anti-national activities and misused
funds to stall the country's economic progress.
Under the Foreign Contribution (Regulation) Act (FCRA), NGOs can receive foreign donations
only after obtaining necessary licence. Section 11 of FCRA 2010 prescribes that no person,
save as otherwise provided in the Act, shall accept foreign contribution unless such person
obtains a certificate of registration or prior permission of the Central Government.
As on 29 July 2023, India had a total of 16,295 active NGOs. FCRA licence of 20,693 NGOs
had been cancelled while the licence of 13,318 was considered ‘deemed ceased or expired’.
Top five states with all types of FCRA Associations were –
• Tamil Nadu – 6527
• Maharashtra – 5210
• Andhra Pradesh – 4169
• West Bengal – 4127
• Karnataka – 3688
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STATE OF FCRA ASSOCIATIONS
In 2017-18, foreign receipts amounted to Rs 16,941crores. They stood at Rs 16,491 crores
in 2018-19, Rs 16,306 crore in 2019-20, Rs 17,059 crore in 2020-21 and Rs 22,085 crore in
2021-22. Thus, Indian NGOs received foreign contributions worth Rs 88,882 crores between
2017-18 and 2021-22.
NGOs based in Delhi received max funds during 2019-20, 2020-21 and 2021-22. Karnataka
was second in 2020-21. Tamil Nadu occupied second position in 2019-20 and 2020-21.
Maharashtra consistently occupied the fourth spot.
The Act
In order to regulate acceptance and usage of foreign funds by individuals and associations,
the Act was first enacted in 1976. The primary aim was to prevent foreign entities from having
undue influence on the working of governmental or non-governmental organisations in the
country through contributions.
The 1976 Act was repealed in 2010 and a new FCRA enacted. Its objective was to consolidate
the law on foreign funds and ‘prohibit acceptance and utilisation of foreign contribution or
foreign hospitality for any activities detrimental to national interest’.
The Act defines foreign contribution as ‘donation, delivery or transfer made by any foreign
source’, be it Indian or foreign, or any article valuing more than the stipulated value.
Permission to accept a foreign contribution is granted for a specific purpose, i.e., cultural,
economic, educational, religious or social programmes.
The registration is valid for five years, after which the NGO has to renew it. Without timely
renewal, the registration is deemed to have expired. Funds must not harm the sovereignty of
the country or impact the functioning of any legislature adversely or cause inter-group
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disharmony. Funds must not be misused for personal gains and only 20 percent of foreign
funds can be used for administrative purposes.
Most interestingly, electoral candidates, members of any state or central legislature, political
parties, public servants, judges, newspaper or media broadcast agency owners, editors or
correspondents, are prohibited from receiving any foreign contribution under the Act.
Misuse of Foreign Donations for Anti-national Activities
Under the new rules notified by MHA in 2015, NGOs are required to give an undertaking that
the acceptance of foreign funds is not likely to prejudicially affect the sovereignty and integrity
of India or impact friendly relations with any foreign state and does not disrupt communal
harmony.
However, it is extremely difficult to monitor the funds that NGOs receive and ensure their
purposeful expenditure. Several transnational NGOs have been found guilty of violating
provisions of FCRA. Many of them have been indulging in political activities by deviously
funding electoral candidates, political parties, public servants, judges and even media
personnel (owners, editors and correspondents). They cultivate influential intellectuals and
government functionaries to create subjective lobbies to influence government policies. For
that, seminars and study tours to foreign countries are organised with lavish hospitality in
five-star hotels.
These lobbies generally further the nefarious agenda of the donor entities, either by stopping
developmental projects or creating dissentions in the society or inciting people against the
duly elected government. They defame the country through subjective articles written by the
paid media. Some resort to anti-national activities blatantly by promoting sedition. In short,
such NGOs act as agents of the foreign countries and manipulate public opinion with their
subjective agenda.
Many NGOs misuse funds to create social disharmony by sponsoring religious conversions
through enticements and creating dissentions between the communities, as was witnessed in
the North East tribal societies. It is a well-known fact that most US and Western NGOs are
working in tandom with the Church to evangelise the vulnerable segments. Similarly, massive
funds are received from the gulf countries to contruct mosques and radicalise the youth.
Several international and prominent NGOs such as Greenpeace India, Sabrang Trust, Amnesty
International and Compassion International have come under the government's scanner for
alleged violations of the FCRA. Most of them have been accused of financial irregularities or
political activity.
Many NGOs receive funds from anti-India foreign donors to stop developmental projects.
Allegedly, NGO ‘The Other Media’ misused foreign funds to organise protests and
demonstrations around Vedanta’s Sterlite copper plant in Thoothukudi (Tamil Nadu). The
protests turned violent and 13 people died in police firing. The plant which was producing 40
percent of India’s copper requirement had to be shut down. The closure has affected around
400 downstream businesses, employing approximately 100,000 people. National loss is
estimated at Rs 14,000 crore. From being a major exporter of copper, India has become a
net importer.
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Kerala government’s ambitious Vizhinjam Port Project is being developed by the Adani group
since 2015. Once completed, it will be India’s first Mega Trans-shipment Container Terminal
with 30 berths and the capacity to handle massive “megamax” container ships. The port is
expected to compete for trans-shipment traffic with Colombo, Singapore, and Dubai. As if on
a cue from some foreign entities, an agitation was started by the local fishermen in August
2022, alleging sea erosion. The clergy-led agitation succeeded in stalling the port construction
work for over four months.
Numerous infra-structure projects are stalled by such NGOs through repeated appeals to the
courts by citing imaginary environmental risks. The prolonged agitation against the Narmada
dam is still fresh in public memory. There are innumerable such examples.
In addition, funds are often diverted to the personal accounts of the office bearers who acquire
personal wealth while pretending to be working for the under-privileged people. Under the
garb of administrative expenses, funds are used to acquire huge bungalows with all attendant
luxuries.
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