FCRA Amendments Aim To Prevent Foreign Powers Interfering With Internal Polity, Diversion Of Funds By NGO : Centre Tells Supreme Court
3 years, 4 months ago

FCRA Amendments Aim To Prevent Foreign Powers Interfering With Internal Polity, Diversion Of Funds By NGO : Centre Tells Supreme Court

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Defending the Foreign Contribution Regulation Act 2020, the Central Government has said that the changes in the law were necessary to prevent malpractices and diversion of funds by NGOs.The Centre said that the amendments were necessary in view of the fact that some foreign powers and foreign state and non-state actors continue to take up activities that amount to interference in. Defending the Foreign Contribution Regulation Act 2020, the Central Government has said that the changes in the law were necessary to prevent malpractices and diversion of funds by NGOs. On reduction of limit for administrative expenses The Centre further stated that he potential of successive multiple chain of transfer not only creates a layered trail of money but also leads to substantive portion of foreign contribution being utilised as administrative expenditure as each recipient could potentially claim its own allowance for administrative expenditure that was permitted upto fifty per cent of total foreign contribution received. On the requirement to open FCRA account in specified branch The Centre said that this requirement was introduced due to the difficulties experienced in monitoring of inflow and outflow of foreign contribution when the accounts of various NGOs were spread in different banks across the country.

History of this topic

Government warns NGOs of penal action for receiving foreign funds without FCRA registration
1 month, 3 weeks ago
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7 years, 1 month ago
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