Morung Express News
Dimapur | January 4
In what could be considered as significant decline in access to funds from abroad, the list of ‘active’ associations in Nagaland under the FCRA- Foreign Contribution (Regulation) Act 2010 has come down from 85 in September 2020 to 59 in January 2022.
During the intervening period, 26 FCRA registered associations were “deemed to have ceased” with the validity of their certificates expiring.
All together the certificate of 67 associations “deemed to have ceased” over the years.
According to the FAQs available on FCRA website (https://fcraonline.nic.in), an existing registration under FCRA, 2010, “will cease from the date of completion of the period of five years from the date of grant of registration.”
The association as a result “will not be eligible for receipt & utilization of foreign contribution” and has to apply afresh for grant of registration.
In addition, as of January 3, 2022 the FCRA registrations of 136 associations from Nagaland featured in the “List of Associations whose registration has been cancelled” according to data available on the FCRA website maintained by the Union Ministry of Home Affairs (MHA).
The list from 2012, however, informed that the last cancellation from Nagaland was in 2019, when registrations of 14 associations were revoked “on violation” of provisions under FCRA Act. Cancellation of registrations was highest in 2015 at 56 and since then, there have been 113 cancellations.
Section 14 of the FCRA, 2010 empowers the Central Government to cancel the certificate for various reasons including giving false statement during registration or renewal, violating any terms and conditions of the certificate or renewal; or if the Central Government, in its opinion, deems it necessary to cancel the certificate, in public interest.
“Any person whose certificate has been cancelled under the section (10) shall not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of such certificate.”
Under Section 13, the Central Government can further suspend the certificate for a “period not exceeding one hundred and eighty days and another additional one hundred and eighty days.”
Falling registration and re-application
Accordingly on January 3, 2022, the FCRA dashboard informed that out of 262 FCRA Associations in Nagaland, 59 were “active as on today”; 67 “Deemed Ceased or Expired as on today; and 136 “Cancelled as on today.”
It must be noted here that the number of cancelled certificates was the same as on September 24, 2020 when The Morung Express last reported on the status of FCRA association in Nagaland. The total FCRA associations in the State then was 260, out of which validity of certificate for 39 had expired while 85 were denoted as active ‘as on today.’
While the ‘active’ associations since then have decreased to 59, there were only 2 new registrations in the intervening period, including a re-application.
The reasons for lapsing of the certificates are not known.
Overall, out of 50,084 total FCRA Associations in India, 16,908 were active while the rest were either cancelled – 20,675 or deemed ceased or expired – 12,501, ‘as on today’ ( January 3, 2022). The number of cancellation is since 2012.
As per the portal, 12 FCRA Registered Associations filed their foreign contribution (FC)-return in 2020-21 in Nagaland. In 2019-2020, 56 associations filed their returns.
Across the country, Tamil Nadu had highest number of active FCRA Associations at 1,434, followed by 1,369 in West Bengal and 1,255 in Maharashtra.
Meanwhile PTI news agency on January 1 reported that of 5,789 entities across India were deemed to have ceased on January 1. As a result, there were 22,762 (active) FCRA-registered organisations till December 31. On January 1, the number came down to 16,829, it informed.
These entities did not apply for renewal of their FCRA licence. In addition, the Union Home Ministry also rejected renewal applications of 179 organisations, it added, citing officials.
Among those organisations whose FCRA registration ceased were Medical Council of India, Emmanuel Hospital Association, Tubercolosis Association of India, Vishwa Dharamayatan, Maharishi Ayurveda Pratishthan etc and educational institutions like IIT Delhi, Jamia Milia Islamia, Indian Medical Association, Nehru Memorial Museum and Library, India Habitat Centre, and Lady Shri Ram College for Women.
What is FCRA, 2010?
As per the FAQ, the FCRA, 2010 has been enacted by the Parliament to consolidate the law to regulate the “acceptance and utilization of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to national interest and for matters connected therewith or incidental thereto.”
Who can receive funds?
The provisions of the Act are applicable to the whole of India; citizens of India outside India; and associate branches or subsidiaries, outside India, of companies or bodies corporate, registered or incorporated in India.
“Foreign contribution" among others include, donation, delivery or transfer made by any foreign source (i) of any article, not being an article given to a person* as a gift for personal use; (ii) of any currency, whether Indian or foreign; and (iii) of any security defined under certain section of the Securities Contracts (Regulation) Act, 1956 and the Foreign Exchange Management Act, 1999.
Any “Person” can receive foreign contribution subject to following conditions that it must have: a definite cultural, economic, educational, religious or social programme; obtain the FCRA registration or prior permission from the Central Government: and it must not be prohibited under Section 3 of FCRA, 2010.
Who cannot receive funds?
Under the FCRA, 2010, certain persons are prohibited to accept any foreign contribution. These, among others, include (a) candidate for election; (b) correspondent, columnist, cartoonist, editor, owner, printer or publisher of a registered newspaper; (c) Judge, Government servant or employee of any corporation or any other body controlled or owned by the Government; (d) member of any legislature; (e) political party or office bearer; (f) organization of a political nature as may be specified under sub-section (1) of Section 5 by the Central Government. (g) Association or company engaged in the production or broadcast of audio news or audio visual news or current affairs programmes through any electronic mode, or any other electronic form as defined in clause (r) of sub-section (1) of Section 2 of the Information Technology Act, 2000 or any other mode of mass communication.
An amendment in 2020 added “public servants” (as defined under the Indian Penal Code) to the list, which according to PRS Legislative Research explanation, includes “any person who is in service or pay of the government, or remunerated by the government for the performance of any public duty.”
According to PRS, under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution or has obtained prior permission under the Act to obtain foreign contribution. The term ‘person’ refers to an individual, an association, or a registered company.
The FCRA the Foreign Contribution (Regulation) Amendment Bill, 2020 was passed by the Lok Sabha on September 20, 2020 and in the Rajya Sabha on September, 22, 2020. It received Presidential assent on Tuesday, September 28, 2020 thus becoming an Act.
