NGO, SHGs, Pressure groups

Question 1

Mo Chatashalee?

Answer 1

literally, My school

More than 5,000 volunteers in villages of Odisha across 17 districts of the state have been giving free education during the pandemic

These villages are mostly inaccessible, with a large number of people belonging to Scheduled Castes and Scheduled Tribes. Due to inadequate digital infrastructure, many children missed out on education after schools were closed due to the pandemic and focus shifted to online classes. Thus, Delhi-based Atmashakti Trust set up centres to reduce learning gaps among primary school-going children and promote voluntarism in the community

Question 2

Foreign Contribution regulation Act: intro?

Answer 2

to regulate the utilization of foreign contributions/hospitality by individuals, associations to keep it consistent with the values of a sovereign, democratic republic.

1. FCRA 1976: original act
2. FCRA 2010 amendment
3. FCRA 2020 amendment

Question 3

FCRA 2010?

Answer 3

• Individuals are permitted to accept foreign contributions without permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
• The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
• Under the Act, organisations are required to register themselves every five years.
• Section 5 of the Foreign Contribution (Regulation) Act, 2010 gives the Union government “unchecked and unbridled powers” to declare an organisation as being one of political nature and deny it access to funds from sources abroad.

Prior Reference Category under the Act:
It implies that to donate to such an NGO, a foreign donor has to take prior clearance from the Ministry of Home Affairs.

Question 4

FCRA 2020?

Answer 4

• The Act regulates the acceptance and utilisation of foreign contribution by individuals, associations and companies.
• Foreign contribution is the donation or transfer of any currency, security or article (of beyond a specified value) by a foreign source.

1. Prohibition to accept foreign contribution:
   
   • Under the Act, certain persons are prohibited to accept any foreign contribution. These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
   • The Bill adds public servants (as defined under the IPC) to this list. Public servant includes any person who is in service or pay of the government, or remunerated by the government for the performance of any public duty.
2. Transfer of Foreign contribution:
   
   1. Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution
   2. The Bill amends this to prohibit the transfer of foreign contribution to any other person.
3. Aadhar for Registration:
   
   1. The Act states that a person may accept foreign contribution if they have: (i) obtained a certificate of registration from central government, or (ii) not registered, but obtained prior permission from the government to accept foreign contribution.
   2. The Bill adds that any person seeking prior permission, registration or renewal of registration must provide the Aadhaar number of all its office bearers, directors or key functionaries, as an identification document. In case of a foreigner, they must provide a copy of the passport or the Overseas Citizen of India card for identification.
4. FCRA Account:
   
   1. Under the Act, a registered person must accept foreign contribution only in a single branch of a scheduled bank specified by them. However, they may open more accounts in other banks for utilisation of the contribution.
   2. The Bill amends this to state that foreign contribution must be received only in an account designated by the bank as “FCRA account” in such branch of the State Bank of India, New Delhi, as notified by the central government. No funds other than the foreign contribution should be received or deposited in this account. The person may open another FCRA account in any scheduled bank of their choice for keeping or utilising the received contribution.
   3. All banks have to report the receipt or utilisation of any foreign contribution by any NGO, association or person to the Central government within 48 hours, whether or not they are registered or granted prior permission under the Foreign Contribution Regulation Act (FCRA) 2010.
5. Restriction in utilisation of foreign contribution
   
   1. Under the Act, if a person accepting foreign contribution is found guilty of violating any provisions of the Act or the Foreign Contribution (Regulation) Act, 1976, the unutilised or unreceived foreign contribution may be utilised or received, only with the prior approval of CG
   2. The Bill adds that the government may also restrict usage of unutilised foreign contribution for persons who have been granted prior permission to receive such contribution. This may be done if, based on a summary inquiry, and pending any further inquiry, the government believes that such person has contravened provisions of the Act.
6. Renewal of License
   
   1. Under the Act, every person who has been given a certificate of registration must renew the certificate within six months of expiration.
   2. The Bill provides that the government may conduct an inquiry before renewing the certificate to ensure that the person making the application: (i) is not fictitious or benami, (ii) has not been prosecuted or convicted for creating communal tension or indulging in activities aimed at religious conversion, and (iii) has not been found guilty of diversion or misutilisation of funds, among others conditions.
7. Reduction in use of foreign contribution fr administrative purposes:
   
   1. Under the Act, a person who receives foreign contribution must use it only for the purpose for which the contribution is received. Further, they must not use more than 50% of the contribution for meeting administrative expenses.
   2. The Bill reduces this limit to 20%.
8. Surrender of certificate: The Bill adds a provision allowing the central government to permit a person to surrender their registration certificate. The government may do so if, post an inquiry, it is satisfied that such person has not contravened any provisions of the Act, and the management of its foreign contribution (and related assets) has been vested in an authority prescribed by the government.
9. Suspension of registration:
   
   1. Under the Act, the government may suspend the registration of a person for a period not exceeding 180 days.
   2. The Bill adds that such suspension may be extended up to an additional 180 days.
10. 2021 Guidelines issued under the Act
    
    • Widening the Scope of Foreign Contribution: Under the issued regulations, donations given in Indian rupees (INR) by any foreigner/foreign source including foreigners of Indian origin like OCI or PIO cardholders should also be treated as foreign contribution.
    • The guidelines mandate that good practices should be followed by NGOs in accordance with standards of global financial watchdog- FATF
    • It asked NGOs to inform the Ministry about “suspicious activities” of any donor or recipient and “take due diligence of its employees at the time of recruitment.”

Question 5

FCRA: issues?

Answer 5

• The Act also held that the government can refuse permission if it believes that the donation to the NGO will adversely affect “public interest” or the “economic interest of the state”. However, there is no clear guidance on what constitutes “public interest”.
• FCRA restrictions have serious consequences on both the rights to free speech and freedom of association under Articles 19(1)(a) and 19(1)(c) of the Constitution.
  
  • By allowing only some political groups to receive foreign donations and disallowing some others, can induce biases in favour of the government. The right to free speech is affected in two ways:
    • NGOs need to tread carefully when they criticise the regime, knowing that too much criticism could cost their survival.
    • FCRA norms can reduce critical voices by declaring them to be against the public interest. This chilling effect on free speech can lead to self-censorship.
  • Besides, given that the right to freedom of association is part of the Universal Declaration of Human Rights (Article 20), a violation of this right also constitutes a human rights violation.
• In April 2016, the UN Special Rapporteur on the Rights to Freedom of Peaceful Assembly and of Association undertook a legal analysis of the FCRA, 2010.
  • It stated that restrictions in the name of “public interest” and “economic interest” as invoked under the FCRA failed the test of “legitimate restrictions”.
  • The terms were too vague and gave the state excessive discretionary powers to apply the provision in an arbitrary manner.
• Non-renewal of FCRA registration requires reasons. Cancellation of FCRA registration is appealable to the High Court. However, rejection orders of non-renewal by the Central Government are not appealable; they can be subject to revision by the central government alone.
  
  • Supreme Court in landmark judgments has held that administrative decisions, contractual or statutory between parties over decades, must entail procedures which are reasonable fair and just. Judicial review applies to prevent arbitrariness or favoritism, when contractual powers are exercised by the government.

Question 6

NGOs in India: stats?

Answer 6

• NGOs are groups of ordinary citizens that are involved in a wide range of activities that may have charitable, social, political, religious or other interests.
• NGOs are helpful in implementing government schemes at the grassroots.
• In India, NGOs can be registered under a plethora of Acts such as the Indian Societies Registration Act, 1860, Religious Endowments Act, 1863, Indian Trusts Act, etc.
• India has possibly the largest number of active NGOs in the world, a study commissioned by the government put the number of NGOs in 2009 at 33 lakh.
  • That was one NGO for less than 400 Indians, and many times the number of primary schools and primary health centres.
• Ministries such as Health and Family Welfare, Human Resource Department, etc provide funding to a handful of NGOs.
• NGOs also receive funds from abroad, if they are registered with the Home Ministry under the Foreign Contribution (Regulation) Act (FCRA).
  • Without this, no NGO can receive cash or anything of value higher than Rs 25,000.
• The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019

Question 7

deregistration of NGOs by GoI?

Answer 7

On what basis is approval cancelled?
The government reserves the right to cancel the FCRA registration of any NGO if it finds it to be in violation of the Act.
● Registration can be cancelled if an inquiry finds a false statement in the application; if the NGO is found to have violated any of the terms and conditions of the certificate or renewal; if it has not been engaged in any reasonable activity in its chosen field for the benefit of society for two consecutive years; or if it has become defunct.
● It can also be cancelled if “in the opinion of the Central Government, it is necessary in the public interest to cancel the certificate”, the FCRA says.
● Registrations are also cancelled when an audit finds irregularities in the finances of an NGO in terms of misutilisation of foreign funds.

● The registration of thousands of NGOs was up for renewal in 2020-21. The Ministry had declined to renew the FCRA registration of 179 NGOs, while 5,789 associations did not apply for a renewal before the December 31 deadline.
● After the exercise, the number of active FCRA-registered NGOs is down from 22,762 to 16,907.