VALIDITY OF REGISTRATION CERTIFICATES UNDER FCRA RULES FOR NGOs EXTENDED TILL SEP’ 30

The ministry of Home Affairs(MHA) has extended the validity of registration certificates granted to NGOs under the section 50 of Foreign Contribution (Regulation) Act,2010 until 30 September 2021 owing to the restrictions placed due to Covid-19.

The Centre announced on Wednesday it has extended the time limit for the implementation of the new Foreign Contribution (Regulation) Act or FCRA regime, a move that will bring relief to scores of non-governmental organisations (NGOs) across the country in the thick of the      Covid-19 crisis. An order issued by the ministry of home affairs (MHA) has said that the deadline will now be September 30, 2021, for obtaining valid FCRA registration and the end of June for opening an FCRA account with the State Bank of India, Delhi, in accordance with the rules.[1]

The order issued by the foreigners division of the MHA cited the pandemic as the reason for the step.

“Keeping in view the exigencies arising out of the Covid-19 situation and to ensure smooth transition to the amended FCRA regime, the central government in exercise of the powers conferred by section 50 of the FCRA 2010 has further decided that the registration certificates expiring during the period between 29th September 2020 and up to 30th September, 2021 shall remain valid upto 30th September 2021, ” the order said.

NGOs had earlier been given time till May 31 to obtain their registration certificates.

The Centre had amended the Foreign Contribution (Regulation) Act last year, introducing a new regime. NGOs had requested for an extension of at least six months to migrate to the new regime citing the pandemic and their inability to help Covid-affected individuals and families because of the new FCRA requirements that have been called stringent.

The BJP-led central government has in recent years stepped up scrutiny of many non-profit groups, cancelling or suspending licences of thousands of NGOs on charges of misreporting of donations.[2]

The MHA notice added that all NGOs and associations who have been granted a certificate of registration or prior permission by the central government “shall not receive any foreign contributions in any account other than the designated FCRA account opened in SBI NDMB from the date of opening such account or July 1, 2021, whichever is earlier”

The decision has been taken in the wake of petitions filed by NGOs in courts over the delay in implemented amended FCRA. After the NGOs and other voluntary organisations filed petitions, the Delhi High Court asked the home ministry to consider if the April 1, 2021 deadline for opening Foreign Contribution (Regulation) Act (FCRA) accounts for NGOs — seeking to receive foreign funds — can be extended in view of the second wave of Covid-19.

Justice Prathiba Singh had asked the home ministry whether it could allow NGOs that have not been able to open FCRA accounts to receive foreign contributions, as long as they maintain records of the same, in accordance with the provisions of the Foreign Contribution Regulation Act, 2010. The court had noted that the non-receipt of this contribution would lead to the non-rendering of services, especially during the pandemic when there is an enormous need for such services.

Following the amendment in rules, the MHA issued a notification in November last year, stating that NGOs must have existed for at least three years and spent Rs 15 lakh in voluntary activities to be eligible to receive money from abroad. It also said office-bearers of such organisations seeking registration under the Foreign Contribution (Regulation) Act must submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given, apart from several other changes. Some NGOs have alleged that the new rules have impaired their ability to assist disadvantaged people, particularly at a time when the second wave of Covid-19 has overrun the country.[3]

[1] https://affairscloud.com/mha-extends-fcra-registration-for-ngos-till-september-30-2021/

[2] https://www.news18.com/news/india/centre-defers-implementation-of-some-new-fcra-rules-for-ngos-citing-covid-crisis-3754781.html

[3] https://www.news18.com/news/india/centre-defers-implementation-of-some-new-fcra-rules-for-ngos-citing-covid-crisis-3754781.html