NEW DELHI: The home ministry wants finance ministry to stop registering NGOs under Foreign Exchange Management Act ( Fema ) so that there’s only one custodian to monitor flow of foreign funds to these organisations.To make its case, the home ministry has drawn up a list of 67 NGOs which were found violating the Foreign Contribution Regulation Act ( FCRA ) but tried to escape penalty by invoking their Fema registration.This, home ministry officials told ET, has emerged as a "leeway" to dodge action under FCRA.Armed with these facts, the home ministry is now all set to shoot off a letter to the finance ministry urging it to "rescind its powers to monitor NGOs under the Foreign Exchange Management Act (Fema)" and let FCRA become the "umbrella legislation" for registering all NGOs receiving funds from external sources."The effort here is to bring all the NGOs receiving foreign contributions under one roof for effective and better monitoring," a senior official told ET.A finance ministry official, on condition of anonymity, however said even Fema was recently amended to give it more teeth for stringent action against erring NGOs.While many international donors and several NGOs from Europe and the US are registered under Fema, MHA officials said they are now under the home ministry’s scanner for using their liaison offices here to disburse funds to NGOs in India in violation of FCRA norms."There are many NGOs which are registered under Fema and continue to disburse foreign funds to various associations. As Fema is regulated by the finance ministry, we are not able to monitor the flow of funds effectively and take action even if it is flagged by any agency. We want all such NGOs to come under one umbrella," said a senior MHA official.During its scrutiny, intelligence agencies have flagged names of several foreign donors who operate a branch or liaison office in India after getting a clearance from the Reserve Bank of India (RBI).According to MHA, as many as 34,000 NGOs are registered in India and more than 10,000 of them lost permits following strict action under FCRA norms.After the Narendra Modi government came to power in 2014, the home ministry has taken action against wellknown international NGOs like Greenpeace and Ford Foundation. Last year, following heavy criticism, the ministry simplified some of its foreign donation rules, making it easier for "good NGOs" to work without indulging in any "anti-national activities".