Govt agrees to meet NGOs for their access to foreign funds

Home ministry circular states that the FCRA director will meet NGOs for 3 hours every month to discuss grievances

New Delhi: A government circular saying that a top bureaucrat will meet representatives of agencies over their permission to receive foreign funds has raised hopes for non-profits, some of which have faced crackdown, even as the wording of the circular has left many in doubt.

A circular dated 18 June on the website of the home ministry’s FCRA division, which deals with the Foreign Contribution Regulation Act (FCRA), said the official will meet their representatives for a total of three hours every month by appointment.

“In order to redress grievances of the associations who have submitted their applications for the grant of registration/prior permission, etc., it has been decided that a monthly meeting will be held by director (FCRA) with genuine representatives of these associations...”, the circular said.

In June alone, the ministry cancelled the FCRA registrations of over 6,800 organizations in two separate instances, including the Banaras Hindu University, the Annamalai University and a Unesco learning centre.

The ministry has justified the crackdown based on a June 2014 Intelligence Bureau (IB) report that said that NGOs, such as Greenpeace India, were working against the national interest.

Organizations which have lost their FCRA licence—mandatory to receive foreign funds—have often complained that they were not given a hearing, and that they wanted to discuss licences with the ministry.

To be sure, the circular does not specifically say if appeals against suspension of registration will be entertained.

According to the circular, the aggrieved organizations must email the home ministry seeking an appointment with the name of the organization, and the person attending the meeting, address, application number and issues for discussion.

The FCRA director will meet representatives on the fifth of every month from 10am to 1pm.

If the fifth is a holiday, the meeting will be held on the next working day.

Willy D’Costa, member and former general secretary, Indian Social Action Forum (INSAF), a human rights advocacy group, is unsure how the latest measure will play out. The government had in 2013 cancelled INSAF’s FCRA registration.

“As required by law, we had been filling returns and submitting responses to queries with the ministry, before our licence was suspended in 2013. It was through the bank we got to know and then, we made several attempts to contact the ministry to get a hearing and to show them that all our paperwork was in order. However, it never happened,” said D’Costa.

The organization then moved the Delhi high court, which restored its registration saying the ministry had not followed the due procedure of informing the organization nor had it given it a due hearing mandated in the course of “natural justice”.

INSAF continues to receive foreign funding. D’Costa says he is glad “at least a platform is being made available for interaction”.

According to Biraj Patnaik, principal advisor to the commissioners of the Supreme Court on Right to Food Campaign, “This structured time being provided is a very good thing, because earlier it was very difficult for us to approach anyone at the ministry... There are many organizations which can benefit from this.” Patnaik was unaware of the circular till two days ago.

Amit Behrar, executive director of National Foundation of India, which supports grassroots organizations working on development issues, is upbeat.

“Right from the start, all non-profit agencies cutting across sectors have been demanding a platform for putting forward their case. And this monthly meeting does just that,” he said.

Henri Tiphagne, the executive director of People’s Watch that works for human rights of the underprivileged, said: “I only learnt of this development a week after the circular was put out because I happened to be browsing through the ministry of home affairs’ FCRA website.”

Tiphagne, who unsuccessfully tried to meet the ministry’s officials when his organization’s registration was suspended from July 2012 to March 2014, said: “It is a great opportunity. Previously, we’ve written, called and even approached the ministry at least half a dozen times with no response—no denial or acceptance of our applications seeking appointments.”

Tiphagne, at present, sees no need for People’s Watch to meet with the ministry, but is hoping that if the need arises, he would be able to gain the appointment unlike the “wall of silence” he has faced in the past.

Not everyone is as optimistic.

Voluntary Action Network of India (Vani), an umbrella organization which promotes voluntarism, is one of them.

“We are trying to organize a meeting with FCRA’s director, to gain greater clarity on what this meeting slot will entail—will appeals against cancellations also be heard, or is it to be limited to the ‘associations who have submitted their applications for the grant of registration/prior permission’—as the circular states,” said Vani’s communications manager Arjun Phillips. He said that Vani hopes these meetings will be the first step towards the longstanding demand of the NGOs to have engagement with the authorities.

FCRA director Deba Prasad Tripathy could not be contacted on his office phone. An email sent to him also remained unanswered. His personal assistant, however, informed that applications are pouring in, and the names and time slots for the associations will be announced in a few days.

Source: http://www.livemint.com/Politics/RvaJyd2Bh0oYG7WBTi7ckJ/Govt-agrees-to-meet-NGOs-for-their-access-to-foreign-funds.html

India Increases Pressure on NGOs

India is cracking down on non-governmental organizations (NGOs) operating on its territory, alleging that thousands have misreported their foreign funding to Indian fiscal authorities.

In the past two months alone, the Home Ministry has cancelled registrations of more than 13,000 NGOs for allegedly failing to file annual tax returns for three years since 2009, according to Indian media reports.

As many as two million home-grown or international NGOs – many of which are funded by foreign donors – work across India, largely in the field of development.

The Indian government this past week added Caritas Internationalis, a Catholic charity based at the Vatican and that has been working in India for the past 50 years, to its NGO watch-list.

The government accuses Caritas of violating India’s foreign funding laws by financing groups that were working “against the country,” Agence France-Presse quoted a Home Ministry official as saying Tuesday.

"There was [a] clear violation of foreign funding law," said the official, who spoke on condition of anonymity.

The case was connected to Caritas’ funding of organizations that had protested against a nuclear plant in Tamil Nadu, in southern India, the official said.

"We have been filing all our returns, documents in time according to law. We necessarily don't find this a hindrance because we anyway declare all our funding to the government," Father Paul V. Moonjely, Assistant Executive Director of Caritas India, told NDTV on June 19.

Caritas is among several high-profile international NGOs that Prime Minister Narendra Modi’s government has accused of violating the Foreign Contribution Regulation Act (FCRA).

The Indian arm of global environmentalist group Greenpeace and the U.S.-based Ford Foundation also were placed on the government’s watch-list.

But last month, the Delhi High Court ordered the government to unfreeze Greenpeace India’s access to bank accounts. These held deposits of money from domestic donors that allowed the NGO to cover its day-to-day operating expenses.

NGO conference relocated to Thailand

The crackdown has prompted the Berlin-based International Civil Society Center to move its “Global Perspectives” conference, which it had been planning to hold in New Delhi, to Thailand, according to a report in The Wire, an Indian news website.

The center describes itself as a “global action platform” for the world’s leading international civil society organizations.

“The reason for changing the venue was our fear that leaders from some of our key stakeholders, such as Greenpeace and others, would not be allowed into the country [India] and that we would fail to achieve our main objective of bringing together all key players irrespective of their political, religious or other approaches and affiliations,” Burkhard Gnärig, the center’s executive director, told The Wire.

Justified or not?

The governmental crackdown on NGOs has elicited a mixed response.

Some observers say the government’s actions are justified.

In their view, the targeted NGOs have failed to deliver any services to the people whom they are registered to serve. Others say this is a clear message from Modi’s government that it won’t tolerate any activities deemed as “anti-state.”

“There has been mushroom growth of NGOs across the country over the years,” Santosh Shukla, president of the NGOs Association of India, told BenarNews.

“The government has the right to cancel registration of such groups which fail to file the annual returns and fulfill other legal requirements on their part. Only those groups that operate within the legal purview and in the interest of the people should be allowed to operate,” he added.

Tapan Bose, a prominent civil society and rights activist, sees the crackdown as uncalled for, saying the government is going after NGOs that are working for people’s welfare.

“The government’s action against these groups has directly affected the poor people in the country as they work for their welfare in multiple ways,” Bose told BenarNews.

"With regard to closing down the operations of the groups, the government has acted in an arbitrary and highly selective manner,” he added.

NGOs: A threat to traditional politics

And, as another observer put it, the crackdown is being driven by a fear of the influence wielded by some NGOs in shaping public opinion, and how this might threaten the government’s political standing.

Prabha Kiran, founder and president of United Human Rights Federation Delhi, an NGO, pointed to a recent case in which NGOs helped bring about a crushing defeat of Modi’s Bharatiya Janata Party by the Aam Admi Party (AAP) in February’s Delhi Legislative Assembly election.

“The Modi government is fearful of the influence of NGOs as they have played a vital role in exposing the corrupt and fraudulent political parties,” Kiran told BenarNews.

An anti-corruption crusade led by activist Anna Hazare had helped bring about the demise of Congress-led United Progressive Coalition (UPA) in last year’s general election, Kiran noted.

“The Modi government might be expecting the same fate, hence it decided to clamp down on NGOs,” she added.

Source: http://www.benarnews.org/english/news/bengali/ngos-06242015181240.html

Caritas funds from Dutch agency under scanner

After the controversy over the Union home ministry’s fresh crackdown on foreign-funded NGOs, the MHA on Wednesday cleared the air saying fund flow from a Netherland-based foreign donor agency Stichting Cordaid to Caritas has come under the scanner since Cordaid is under the prior-approval category.

Cordaid had been placed under prior approval category on Aug. 6, 2012, during the tenure of the UPA-II government. An official statement said the ministry received a reference from Standard Chartered Bank seeking clearance for crediting of an inward remittance of Euro 2,30,000 from Stichting Cordaid in favour of Caritas India, which is an NGO working in India registered under FCRA, 2010.

“Comments of security agency were sought and on the basis of the inputs received from them the matter is under consideration in the ministry,” the statement said. It further said, ‘’Any inward remittance from this agency to any Indian NGO will be credited only after clearance from the ministry of home affairs.” Sources said the IB had raised a red-flag over Cordaid’s fund to Indian NGOs in 2011-12 during the Kudankulam protests prompting the government to put it in the prior-permission category. “Other than Cordaid’s funding to Caritas, we have no problem with the latter receiving money from any other donors,” a top government official said. Meanwhile, security sources also revealed that out of the 16 FCRA registered NGOs, nearly a dozen of them had been put in the prior-permission category during the UPA-II tenure.

Source: http://www.asianage.com/india/caritas-funds-dutch-agency-under-scanner-095

DRAFT CHANGES IN FCRA RULES

Integrated Application for Registration, Prior Permission and Renewal
One integrated form prepared for FCRA registration, Prior permission and Renewal. Till now one had to use different forms for each of these activities, FC3 for registration, FC4 for prior permission and FC5 for renewal, now an integrated form FC3 has been drafted.
Now printed copy of form not to be submitted, instead applications need to be Digitally Signed just like as in Income Tax and Companies Act. All documents required to be submitted in hard copies would now be scanned and submitted alongwith these applications.
Fee would need to be paid online through electronic gateway.

Declaration on web-site
All NGOs granted registration / prior permission would need to post Audited FCRA Accounts would need to be posted on their websites.
Any foreign contribution received would need to be displayed within 7 days of receipt on website.

Annual Return
From now on even annual return (FC6 till now) will no longer need to be filed in printed copy and only Digitally Signed copy would need to be filed alongwith all supporting documents. Time limit still remains of 31st

Requirements from Bankers
All bankers have to inform within 48 hours Central Govt. about receipt of any foreign contribution by any ‘person’ who receives such contribution but till date does not have registration / prior permission. In previous rules this was 30 days.
Bankers are also required to inform within 48 hours the central govt. all remittances received by FCRA registered or having prior permission in their designated or utilization bank accounts.

Changes in Forms
Earlier there were 10 forms (FC1-FC10), these have now been reduced to 7 (FC1-FC7). As mentioned above Form for Registration (FC3), Form for Prior Permission (FC4) and Form for Renewal (FC5) all have been merged in a new form FC3. Also earlier forms for articles (FC7) and securities (FC8) have been merged into one form FC5. Consequentially all other forms have been renumbered in sequential order.

Changes in these forms are highlighted as below:

FC1 (new Form No. FC1): Intimation of receipt of FC by way of gift from relative.
No change except details like e-mail, mobile nu., address etc. now sought.
Still to be submitted in a printed copy.
Normally to be submitted by an individual.

FC2 (new Form No. FC2): Prior permission for receiving hospitality
Normally to be submitted by persons covered under S. 3, (legislature, Govt employees, judges, etc.) who are likely to visit abroad and accept foreign hospitality
Certain changes made in the form but seem more a case of drafting error, as details of organisation, which will provide hospitality seem to have been left out.

FC3 – earlier only covered registration (new Form now covers registration / prior permission / renewal)
Very strange now the form requires details of facebook page and twitter handle of the chief functionary
Now alongwith details of Chief Functionary and executive members/ office bearers, details of Chief Patron are also requested.
In case any of the persons whose details have been provided is a foreign citizen, following additional details are requested:
Place of Birth
Passport No.
Permanent address in foreign country
If a person of Indian origin, then details of OIC/PIO card,
If resident in India, from when,
In case of above persons details of any positions held in any other NGO
Details also asked for organisations which have been granted prior permission / registration and are a unit / branch / associate of the organisation applying.
Has been prohibited under S. 10 or asked to obtain prior permission under S. 9(d).
Details of designated / utilization accounts being asked.
Q 13 asks for details of foreign sources both individuals as well as organisations from whom the foreign contribution is proposed to be received. Most likely this is applicable in case of prior permission where sources are known. However the Form does not mention that this information is not required in case of Registration cases.

FC4 – for annual return (earlier FC6)
Prior permission return earlier used to go manually, now this will have to go online.
Facebook page and twitter handle details of the chief functionary to be given here too.
Total number of employees to be disclosed – This could pose problem as many NGOs are not registered for PF & ESI
It is also asking donor wise details of foreign / local source. Rather perplexed, if a donor is a local source, then it should not appear in FCRA return in any case ?
Now project details are also required along with address of implementation. Now amount has to be given address-wise.
Details of administrative exps. asked for. Earlier no details were required.
Branch office details to be provided
Details of Designated as well as Utilisation Bank Accounts also required to be disclosed
Details of closing balance not asked for.
Now Chief Functionary has to declare that FC has not been used for (i) detrimental to national interest, (ii) not likely to affect prejudicially public interest, (iii) not likely to affect prejudicially security, strategic, scientific or economic interest of the State and any matters connected therewith or incidental thereto.
Many changes in List of purposes to be discussed separately.

Call for proposals: Symposium on State Competitiveness

Deadline: 30 June 2015

The U.S. Embassy Public Affairs Section in New Delhi is currently seeking proposals from the legally-recognized non-profit, nongovernmental organizations for the program called Symposium on State Competitiveness with a special focus on the North Indian states of Uttar Pradesh, Himachal Pradesh, Uttarakhand, Punjab, Rajasthan, Jammu & Kashmir, and Haryana (including Union Territory Chandigarh). This initiative aims to share best practices that would allow states to become more competitive, improve the business environment, and promote trade between the U.S. and India.

This initiative will have two program components-

1. A Symposium on State Competitiveness: This symposium will bring together key stakeholders, including state policymakers, industry associations, business leaders, researchers, and strategists, who will discuss economic policy, regulation, and best practices from the Indian and American state context. The event will include discussions on how states can become more competitive by focusing on key areas such as policy reforms, strengthening the institutional framework, improving infrastructure, use of information technology, and encouraging innovation and skill development.

2. A North India Speaking Tour for Two American Experts: This program could include interaction with the Foreign Commercial Services’ American Business Corners (ABCs) in North India and webinars between Indian audiences and U.S. industry representatives. The speaking tour will last for approximately 10 days. The speakers, target cities, and program schedule will be coordinated in collaboration with the Embassy. The speakers chosen could also be part of the symposium, with the speaking tour occurring immediately before or after the symposium.

Award Information

The award amount lies between $ 150,000 to $ 200,000.

Eligibility Criteria

§ Open to all non-profit, non-governmental organizations. Organizations may sub-contract with other entities.

§ Applicants must be registered with Grants.gov before submitting an application.

§ Organizations must have a Data Universal Numbering System (DUNS) number from Dun & Bradstreet and an active SAM registration.

§ The Foreign Contribution Regulation Act (FCRA) of the Government of India applies for Indian applicants.

§ Applicants must acquire all required registrations and rights in the United States and India. All intellectual property considerations and rights must be fully met in the United States and India.

§ Any sub-recipient organization must also meet all the U.S. and Indian requirements described above.

§ Cost sharing is not required for the funding opportunity.

§ Award does not allow for construction activities or costs.

§ The U.S. Mission to India grants cannot be used to fund religious or partisan political activity.

Application Guidelines

§ Applicants must submit their proposals in a prescribed application format and detailed budgets in a prescribed Budget Spreadsheet

§ All documents must be in English

§ All budgets must be in U.S. dollars

§ All pages must be numbered

§ All materials must be submitted in .pdf format

§ Forms SF-424, SF-424A and SF-424B must be completed and submitted with the application.

§ Applicants may submit the following additional information-

§ Budget Narrative

§ Letters of Intent

§ Proof of Non-profit Status

How to Apply

Applicants must submit their proposals together with a cover letter via email. After reviewing, selected applicants will be acknowledged.

For more information, please visit http://grants.gov and opportunity number NDRFP16-05.

Government Cancels Licences of 2,406 NGOs

NEW DELHI: In a fresh move, the government has cancelled the licences of 2,406 Non-Governmental Organisations (NGOs) across the country, which includes entities that run schools and hospitals.

In the wake of the cancellation of their registrations, the NGOs would not be able to receive foreign funds. According to official data, Maharashtra tops the list with the cancellation of licences of 964 NGOs followed by Uttar Pradesh with 740 and Karnataka with 614.

The licences of 88 NGOs were cancelled in Tamil Nadu. These cancellations have taken place between June 19 till today, officials said. The decision to cancel the registration of these entities under the Foreign Contribution Regulation Act was taken by the Union Home Ministry after the NGOs allegedly failed to submit their annual returns and in view of other anomalies.

All the organisations were given proper notice by the Foreigners' Division of the Home Ministry with adequate time to reply before their FCRA licences were cancelled, official sources said.

Meanwhile, in a related move, Caritas International, linked to the Vatican, may be put on a watch list and it would have to seek prior permission before receiving funds from abroad, official sources said, adding that the bankers of the NGO would be notifying them.

However, a spokesman for the NGO denied having received any such notice and said that the organisation has complied with all laid-down norms. In two earlier rounds of crackdown this year, licences of nearly 13,470 NGOs were cancelled for alleged violation of FCRA

Source: http://www.newindianexpress.com/nation/Government-Cancels-Licences-of-2406-NGOs/2015/06/23/article2882804.ece

Government cancels licences of 2,406 NGOs

New Delhi: In a fresh move, the government has cancelled the licences of 2,406 Non-Governmental Organisations (NGOs) across the country, which includes entities that run schools and hospitals.

In the wake of the cancellation of their registrations, the NGOs would not be able to receive foreign funds.

According to official data, Maharashtra tops the list with the cancellation of licences of 964 NGOs followed by Uttar Pradesh with 740 and Karnataka with 614. The licences of 88 NGOs were cancelled in Tamil Nadu.

These cancellations have taken place between June 19 till today, officials said.

The decision to cancel the registration of these entities under the Foreign Contribution Regulation Act was taken by the Union Home Ministry after the NGOs allegedly failed to submit their annual returns and in view of other anomalies.

All the organisations were given proper notice by the Foreigners' Division of the Home Ministry with adequate time to reply before their FCRA licences were cancelled, official sources said.

Meanwhile, in a related move, Caritas International, linked to the Vatican, may be put on a watch list and it would have to seek prior permission before receiving funds from abroad, official sources said, adding that the bankers of the NGO would be notifying them.

However, a spokesman for the NGO denied having received any such notice and said that the organisation has complied with all laid-down norms.

In two earlier rounds of crackdown this year, licences of nearly 13,470 NGOs were cancelled for alleged violation of FCRA.

Source: http://www.indiatvnews.com/news/india/govt-cancels-licences-of-2406-ngo-51983.html

Govt cancels licences of 2,406 NGOs

In a fresh move, the government has cancelled the licences of 2,406 Non-Governmental Organisations (NGOs) across the country, which includes entities that run schools and hospitals.

In the wake of the cancellation of their registrations, the NGOs would not be able to receive foreign funds.

According to official data, Maharashtra tops the list with the cancellation of licences of 964 NGOs followed by Uttar Pradesh with 740 and Karnataka with 614. The licences of 88 NGOs were cancelled in Tamil Nadu.

These cancellations have taken place between June 19 till today, officials said.

The decision to cancel the registration of these entities under the Foreign Contribution Regulation Act was taken by the Union Home Ministry after the NGOs allegedly failed to submit their annual returns and in view of other anomalies.

All the organisations were given proper notice by the Foreigners' Division of the Home Ministry with adequate time to reply before their FCRA licences were cancelled, official sources said.

Meanwhile, in a related move, Caritas International, linked to the Vatican, may be put on a watch list and it would have to seek prior permission before receiving funds from abroad, official sources said, adding that the bankers of the NGO would be notifying them.

However, a spokesman for the NGO denied having received any such notice and said that the organisation has complied with all laid-down norms.

In two earlier rounds of crackdown this year, licences of nearly 13,470 NGOs were cancelled for alleged violation of FCRA.

Source: http://www.business-standard.com/article/pti-stories/govt-cancels-licences-of-2-406-ngos-115062301227_1.html

MHA cancels licences of over 15,000 NGOs for violations of FCRA

In a fresh crackdown, the Ministry of Home Affairs (MHA) has cancelled licences of over 15,000 Non-Governmental Organsiations (NGOs) for violations of the Foreign Contribution Regulation Act (FCRA).

In addition, the government has cancelled the licences of 2,406 NGOs across the country, which includes entities that run schools and hospitals. In the wake of the cancellation of their registrations, the NGOs would not be able to receive foreign funds. According to official data, Maharashtra tops the list with the cancellation of licences of 964 NGOs followed by Uttar Pradesh with 740 and Karnataka with 614. The licences of 88 NGOs were cancelled in Tamil Nadu. These fresh cancellations have taken place since June 19.

The decision to cancel the registration of these entities under the Foreign Contribution Regulation Act was taken by the Union Home Ministry after the NGOs allegedly failed to submit their annual returns and in view of other anomalies.

All the NGOs were given proper notice by the Foreigners' Division of the Home Ministry with adequate time to reply before their FCRA licences were cancelled, official sources said.

Meanwhile, in a related move, Caritas International, linked to the Vatican, may be put on a watch list and it would have to seek prior permission before receiving funds from abroad, official sources said, adding that the bankers of the NGO would be notifying them. However, a spokesman for the NGO denied having received any such notice and said that the organisation has complied with all laid-down norms. In two earlier rounds of crackdown this year, licences of nearly 13,470 NGOs were cancelled for alleged violation of FCRA.

Source: http://indiatoday.intoday.in/story/mha-cancelled-licences-ngos-fcramaharashtrafcra-licences-foreign-contribution-regulation-act/1/446623.html

Government cancels licences of 2,406 NGOs

New Delhi, Jun 23 (PTI) In a fresh move, the government has cancelled the licences of 2,406 Non-Governmental Organisations (NGOs) across the country, which includes entities that run schools and hospitals.

In the wake of the cancellation of their registrations, the NGOs would not be able to receive foreign funds.

According to official data, Maharashtra tops the list with the cancellation of licences of 964 NGOs followed by Uttar Pradesh with 740 and Karnataka with 614. The licences of 88 NGOs were cancelled in Tamil Nadu.

Source: http://www.niticentral.com/2015/06/24/nda-cancels-licences-of-2406-ngos-319625.html