NGO Consultant

NGO Consultant
Odisha NGO Consultancy Services

Friday, May 15, 2015

Foreign Contributions Regulation Act: Old wine in new bottle

FCRA dates back to the Emergency. In its current form, it is the handiwork of the UPA, and the NDA is simply taking up from where the UPA left

The recent cancellation of licences of many not-for-profits allowed to receive foreign funds is an exercise started by the United Progressive Alliance (UPA) in 2010 following a series of public protests against government policies.

The Foreign Contributions Regulation Act (FCRA) dates back to prime minister Indira Gandhi’s emergency rule in 1975-77, when it was put in place to check dissent, according to activists.

“Gradually, subsequent governments made it more and more restrictive,” said Harsh Jaitli, chief executive officer of Voluntary Action Network India, a not-for-profit which promotes volunteering through advocacy.

In its current form, FCRA is the handiwork of the Congress-led United Progressive Alliance (UPA), which amended it in 2010 on concerns that global agencies were supporting local groups in protests against the Kudankulam nuclear plant in Tamil Nadu, says Jaitli. According to him, the Bharatiya Janata Party-led National Democratic Alliance (NDA) government is simply taking up from where the UPA left.

“This Act is part of statecraft. Whoever is responsible for running a state at a given point of time uses such act/rules to control dissenting voices,” said Anil Choudhary of INSAF, a not-for-profit whose funds were blocked by the home ministry two years ago. The organization filed a case in the Delhi high court against this order and won in 2013.

Current developments have a global background. Governments around the world perceive an increased need to monitor funds in a shrinking global economy, said advocate Kabir Dixit, who practices in the Supreme Court.

“The impact of Acts like the FCRA boils down to government curbs on freedom of association and relevant linkages can also be traced to an inter-governmental body, the Financial Action Task Force (FATF), which was formed in 1989 to look into the growing funding of terror organizations.”

According to Dixit, following the 9/11 terror attacks in the US, FATF submitted a set of recommendations, “which can be seen as deeply suspicious of the role of NGOs”. This report, along with the growing incidence of terrorism in India in the 1990s, gave birth to FCRA in its current form, said Dixit.

Source: http://www.livemint.com/Politics/FBu1oorpKQ6Qg6TgcBlkOP/Foreign-Contributions-Regulation-Act-Old-wine-in-new-bottle.html