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Thursday, June 22, 2017

10,000 more NGOs may lose licence

May not have filed annual returns

The Union Home Ministry is examining if the Foreign Contribution Regulation Act (FCRA) licences of over 10,000 NGOs should be cancelled, as they have not complied with the Centre's order to file annual returns under five categories. While over 8,000 NGOs did file the returns under all the five formats, most did not comply entirely.

NGOs that receive foreign grants are required to get a FCRA licence and file five annual return forms. There are over 20,000 NGOs registered under the FCRA.

Since the NDA government came to power, the FCRA licences of more than 11,000 NGOs have been cancelled. More than 1,300 were refused renewal of their licence for violation of the FCRA.

'Deemed expired'

In May this year, the Home Ministry gave 18,523 NGOs whose licences were "deemed expired" on account of non-compliance, a one-time opportunity to give details of their income and expenses by June 14. The NGOs were asked to submit their annual returns for five years, from 2010-11 to 2014-15. However, so far only 8,267 NGOs have filed such returns, a Ministry spokesperson said.

The Home Ministry is examining what action it could take against the remaining 10,256 NGOs that have still not filed all the returns. One of the options it's considering is cancelling their registration.

Govt. warning

A Home Ministry spokesperson said that 2,239 NGOs had filed returns for four years, 2,071 for three years, 2,057 for two years, and 2,339 for one year. The Ministry had earlier warned these NGOs that they might lose their registration if they failed to give all the details.

"The last date for uploading annual returns for 2010-11 to 2014-15 is June 14, 2017. Failure to upload all annual returns will lead to cancellation of registration/renewal already granted," joint secretary (foreigners) in the home ministry Mukesh Mittal had said in an order.

The Ministry had said that starting May 15 and till June 14, NGOs could upload their missing annual returns along with the requisite documents within 30 days. No compounding fee would be imposed on them for late filing of annual returns during this period, and this exemption was a one-time measure.

As per the rules, the renewal of registration for receiving foreign aid cannot be granted unless the organisation uploads its annual returns to the FCRA websi

Source: http://www.thehindu.com/news/national/10000-more-ngos-to-lose-fcra-licence/article19110087.ece