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Current affairs forms an important component of several competitive exams such as the UPSC Civil Services Examination, SSC CGL, Bank PO & PSU entrance tests, etc. Therefore, understanding terms/concepts/events that are in the news is critical for aspirants. We at PaGaLGuY bring you this series of articles in which we shall explain some of these important concepts/events for you. This article will give you details about the cancellation of licenses of nearly 9000 NGOs that flouted FCRA regulations.
Cracking a whip against NGOs violating provisions of Foreign Contribution Regulation Act (FCRA), the Ministry of Home Affairs (MHA) cancelled licenses of 9000 NGOs to received foreign funds, in April. The action was taken as the NGOs failed to file annual returns for three years (2009-2012), specifying amount of foreign funds received, their sources, the purpose it was received for and the manner of its use.
The second round of cancellation of licenses to receive foreign funds was started on May 6 and continued till June 9. A total of 4470 NGO licenses were cancelled.
Defaulting NGOs
The list of defaulting NGOs that were barred from receiving foreign monetary aid included prominent names like the Delhi University (DU), Jawaharlal Nehru University (JNU), Supreme Court Bar Association, Escorts Heart Institute, Panjab University, Chandigarh, Gujarat National Law University, Gargi College, Delhi, Lady Irwin College, Delhi, Vikram Sarabhai Foundation, School of Planning and Architecture (SPA), National Minorities Development and Finance Corporation, which works under the minority affairs ministry.
Foreign benefactors on govt’s watch list
The government also ordered that funds from US-based philanthropic organisation, Ford Foundation was not to be disbursed to any NGO without prior approval from the MHA as the foundation was believed to be aiding activities that would damage India’s socio-economic and political interests.
This move was in accordance with the Gujarat government’s request to the ministry to take action against Ford Foundation as it was “interfering in the internal affairs” of the country and “abetting communal disharmony” through NGOs called Sabrang and Citizens for Justice and Peace (CJP), run by activist Teesta Setalvad and her husband Javed Anand, respectively. As on June 30, the FCRA registrations of these two NGOs were cancelled.
Similarly, Greenpeace India’s license was suspended temporarily in April as it downplayed the funds it received from foreign sources and carried out transaction without informing authorities. All the seven bank accounts of the NGO were also frozen.
Netherlands’ Bertha Foundation, the environmental organisation, Greenpeace International, and Climate Works Foundation, were also under scanner for similar violations along with 10 such establishments.
NGOs’ reaction
After the restriction, representatives from the Ford Foundation’s stated that they are confident of their compliance with the law. Also, that if the Indian government suggests methods to strengthen and improve their grant-making processes, the methods will be incorporated.
Greenpeace, on the other hand, stated that the government suspended its license to receive funds from abroad with an aim of closing it down. The NGO also countered MHA on several fronts after the suspension was issued.
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