Why in news
The Union Home Ministry granted FCRA registration to the Banke Bihari temple in Vrindavan, allowing it to receive foreign donations for religious activities.
The temple priests say they did not apply for this registration.
There’s a legal dispute over the control of the temple’s affairs and funds between the temple’s hereditary priests and the state government.
The FCRA Act stands for the Foreign Contribution (Regulation) Act, 2010.
It's a law in India that regulates how organizations and individuals can accept and use foreign donations.
Purpose:
Ensures foreign contributions come from legitimate sources and are used for legitimate purposes.
Prevents foreign funding from being used against India's national interest.
Applicability:
Applies to any person or organization that wants to receive foreign donations.
Extends to Indian citizens abroad and foreign branches of Indian companies.
Key Regulations:
Requires registration or prior permission from the government for most organizations to accept foreign funds.
Restricts how donations can be used, with limitations on administrative expenses.
Mandates reporting on how foreign contributions are received and utilized.
About FCRA
FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India’s affairs by pumping money into the country through independent organisations.
The FCRA Act, 2010, was amended again in 2020, giving the government tighter control and scrutiny over the receipt and utilisation of foreign funds by NGOs.
Criteria:
The FCRA requires every person or NGO seeking to receive foreign donations to be:
registered under the Act
to open a bank account for the receipt of the foreign funds in State Bank of India, Delhi
to utilize those funds only for the purpose for which they have been received and as stipulated in the Act.
FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
Prohibitions of Activities Under FCRA Registration:
The applicant must not represent fictitious entities.
The applicant should not have been involved in religious conversion activities, either directly or indirectly.
The applicant should not have a history of prosecutions related to communal tension or disharmony.
The applicant must not be engaged in activities related to sedition.
The FCRA prohibits candidates, journalists, media companies, judges, government servants, politicians, and political organizations from receiving foreign funds.
Validity and Renewal:
FCRA registration is valid for five years, and NGOs are required to apply for renewal within six months of the registration's expiry.
The government has the authority to cancel an NGO's FCRA registration for various reasons, including violations of the Act or a lack of reasonable activity in their chosen field for two consecutive years.
Once canceled, an NGO is ineligible for re-registration for three years.
FCRA 2022 Rules:
In July 2022, the MHA introduced changes to FCRA rules. These changes included increasing the number of compoundable offences from 7 to 12.
The rules also raised the limit for contributions from relatives abroad that do not require government intimation from Rs 1 lakh to Rs 10 lakh and extended the time limit for intimation of the opening of bank accounts.
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