The amendments to the Foreign Contribution Regolation Act are active from 1st May. The new terms reduce the freedom of action of NGOs and Catholic organizations.

New Delhi (AsiaNews) - From 1st May, the new amendment to the Law on Control of donations from abroad (Foreign Contribution Regolation Act - FCRA 2010), as reported in the official gazette. For Father Cedric Prakash, director of Prashant, a Jesuit center for human rights, justice and peace, in Ahmedabad the change is bound to have repercussions in the long-term for NGOs, especially those who work to empower the poor like Dalits, Adivasis, minorities and other vulnerable sectors of society. "

In fact, the reform of the law increases government control on the economy that revolves around non-profit organizations, including Catholic organizations. In particular:

1. Concept of ‘permanent’ registration done away with; A five-year registration is provided so that dormant organisations do not continue. All existing registered organisations are deemed to be on a five-year validity from now.
2. ‘person’ has been defined in a broader sense
3. ‘Organisations of political nature’ cannot receive foreign funds.
4. Ceiling on administrative expenses has been prescribed.
5. Procedure for suspension and cancellation of registration has been Prescribed.
6. Statutory role provided for banking sector in regulation.
7. Time limits have been provided for accountability of officials
8. To deal with bona fide mistakes of NGOs, provision has been made for ‘compounding’ of offences.

Fr. Prakash says that now the government control will be greater due to the lack of clarity in the terms, subject to easy misinterpretation. The Jesuit gives the example of point # 2, which prohibits any NGO, of a political nature, or participating in political activities, from receiving foreign donations. He explains: " This particular clause can give rise to a whole range of interpretations. For example, if the Public Distribution System in a particular town or village is not functioning, can the NGO concerned be involved in organizing the people and getting for them their legitimate rights?

Further, if communal riots break out, can a NGO take a stand against those who foment the trouble or criticize the role of the Government, the law and order mechanism and political leaders for not taking a stand? ".

According to Father Prakash, the transfer of funds from a foreign currency account to another [foreign currency account] will have a major impact on the work of many organizations: "This will greatly impede serious development work when several organizations collaborate for a particular project but there is only one major recipient and the FC money has to be transferred to other partners "

The former National Democratic Alliance, led by the BJP (Bharatiya Janata Party), started the campaign to amend the existing law in 2000. According to the BJP, NGOs and nonprofit organizations are using foreign funding to engage in unlawful activities against the state. Among these activities "religious conversion" and "proselytism" are cited.

The Foreign Contribution Regulation Act came into force in 1976 at the initiative of Indira Gandhi – then prime minister - who feared that her opponent, J. P. Narayan, used foreign funds to build opposition to the government. (NC)

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