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Key Highlights Foreign funding to all NGOs through the ‘prior permission’ route may be restricted to a maximum of two times

If enforced, this will impact NGOs like Amnesty India



To get any further contributions from abroad, Amnesty India may have no option but to register under FCRA





NEW DELHI: Foreign funding to all NGOs through the ‘prior permission’ route may be restricted to a maximum of two times, after which they will have to mandatorily get themselves registered under the Foreign Contribution (Regulation) Act, 2010 to receive any subsequent contribution from abroad.

According to a home ministry officer, the prior permission facility, as per a fresh interpretation of Section 12 of FCRA, 2010, and Rule 9 of FCRA Rules, is essentially meant for start-ups and cannot be used more than twice for the same project.

This interpretation, if enforced, will impact NGOs like Amnesty India. The NGO has applied eight times since 2000 for prior permission to receive foreign contributions (of which four were approved and four denied). To get any further contributions from abroad, Amnesty India may have no option but to register under FCRA.

Incidentally, Amnesty had earlier taken a position against applying for FCRA licence on the grounds that FCRA was a “much abused law”.

A home ministry official claimed that “both FCRA and rules notified therein are clear that an NGO cannot seek prior permission for the same project more than twice”.

He pointed to Section 12(b) of FCRA which says the ‘person’, a term used for both individual or entity, making an application for registration should have undertaken reasonable activity in the chosen field for the benefit of society for which the foreign contribution was proposed to be utilised.

“This means that start-ups can get foreign funding through the prior permission route until they are eligible for registration,” the official said.

Section 12(c) stipulates that the person making an application for prior permission must have prepared a reasonable project for the benefit of society.

Rule 9 of FCRA Rules, meanwhile, says no person shall make a second application for registration or prior permission within six months of submitting an application either for the grant of prior permission for the same project or for registration.

“There’s a reason why the rule speaks of ‘second’ application and not ‘subsequent’ applications.

The only logical reasoning is that there can be no third application for foreign funding for the same project under the prior permission route. For that, the NGO must first register under FCRA,” the ministry official said.

Though home ministry brass are clear that this is the correct reading of FCRA Act and rules, there are many NGOs which have been regularly receiving foreign funding through the prior permission route.

“It is possible that the earlier interpretation of the law was different. But we are now clear that prior permission for foreign funding cannot be sought more than twice,” the official said.

However, experts said this fresh interpretation may be questioned.

“It may be a good idea to go for an amendment to FCRA to bring more clarity in the provision dealing with ‘prior permission’,” said another official.

The step will impact NGOs like Amnesty India. The NGO has applied eight times since 2000 for prior permission to receive foreign contributions (of which four were approved and four denied). However, experts said this fresh interpretation may be questioned

