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Wednesday 6 September 2023

NGOs and Foreign Donations-MAJ GEN MRINAL SUMAN

 

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The 1976 Act was repealed in 2010 and a new FCRA enacted.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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