Why NGOs fear the new FCRA regulations

In the abridged monsoon session of Parliament, the contentious Foreign Contribution Regulation Act, 2020, was passed amid concerns by non-governmental organisations that the new changes will sound the death knell for them. Voluntary Action Network India, the apex body of Indian voluntary development organisations, said in a statement: “The FCRA will be a death blow to development relief, scientific research and community support work of the NGO community, as it prohibits collaboration with other Indian organisations.” Referring to the role played by NGOs during the Covid-19 pandemic, VANI said that the new Act “throttles the spirit of cooperation that had been ushered in earlier this year by the positive role played by development organisations in mitigating the lockdown and Covid-19 pandemic by virtually making it impossible for NGOs to function”. On the reduction of cap from 50 per cent to 20 per cent on administrative expenses, Rai said: “If an NGO meant for civil work has to spend 50 per cent of the received contribution on itself, then what good work can it be expected to do?” He even accused NGOs of spending funds on their family members. On including public servants under list of entities not exempted to receive foreign funds, Rai said, “this was necessary for people who were drawing money from state funds such as court-appointed officers.” The NDA government and NGOs While NGOs have accused the Narendra Modi government of muzzling this sector by blocking foreign funds, government voices have often alleged that a large number of NGOs have been funded by foreign agents to work against the interest of India and even to indulge in activities such as religious conversion. A report by foreign consultancy firm Bain & Co in 2019 had said that foreign contribution to NGOs in India had dropped by 40 per cent under the Modi government.