Home Ministry warns NGOs flouting FCRA norms

New Delhi, Jan 21, 2025

Synopsis
The Union home ministry raised concerns over NGOs using foreign funds despite lacking registration or legal clearance under the FCRA. This action breaches regulations and could lead to penalties. NGOs with expired or canceled licenses have applied to courts to access funds for paying salaries and covering daily expenses.

The Union home ministry on Tuesday flagged the use of foreign money by NGOs which have not been granted registration or permission or renewal or whose registration has ceased on expiry of validity period.

The ministry did not name any organisation but said that such an act was a "violation of provision of FCRA".

It said "any transaction in FCRA accounts, FCRA utilisation accounts of NGOs whose FCRA registration has been cancelled or ceased or validity expired would amount to violation of FCRA 2010 and is liable for penal action", adding that, "In view of the above...all concerned are directed to comply with provision of FCRA, 2010."

In the past, several prominent NGOs lost their licences but have continued to use their FCRA accounts for daily expenses, which officials said amounted to a violation of rules. Many NGOs have approached judicial authorities for release of their FCRA money to pay salaries and meet day-to-day expenses.

[The Economic Times]