Taking shield of Covid pandemic, several NGOs misusing FCRA regime to siphon off funds: Centre tells Supreme Court

Read Time: 05 minutes

The Central Government has told the Supreme Court there exists no fundamental right to unbridled foreign contribution, while replying to a plea challenging the Ministry of Home Affairs (MHA), Government of India’s notification dated May 18, 2021, which extended the date for compliance of specific provisions of the Foreign Contribution Regulation (Amendment) Act, 2020.

The Centre has also highlighted that with respect to plea impugning the amendments on the ground of need of foreign aid during the pandemic, a connected petition has questioned the bonafides of such a plea alleging that, "taking the shield of the Covid-19 pandemic and their relief work, several NGOs and individuals are actually misusing the FCRA regime to siphon off funds obtained from abroad for purposes" outside the purview of the FCRA.

The affidavit has been filed in reply to the petitions challenging the May 18 notification and amendments.

The government has told the Court that "in fact, there exists no fundamental right under which any right, legal or otherwise, can be said to include the purported right to receive foreign contributions."

It has also been stated that the Foreign Contribution (Regulation) Amendment Act, 2020 does not bar any person who falls within the above criteria to seek FCRA registration or prior permission.

"As for amended Section 7, it only restricts transfer of Foreign Contribution to other persons/NGOs once the foreign contribution is received in India by a particular NGO/person," the affidavit read.

Over the issue of obtaining Aadhar numbers of key functionaries of the NGOs, referring to the judgment of the Supreme Court in the case of K.S. Puttaswamy vs. Union of India, the government said, "the Aadhar numbers of the office bearers, key functionaries and members would facilitate proper identification of person and associations with which the persons are connected for facilitating monitoring of activities of associations which should not be detrimental to the national interest and hence the restrictions are reasonable and proportionate."

It has been pointed out that close to 22,600 associations are registered under FCRA, and that "due to the proactive efforts of the Central Government, over 19000 FCRA Accounts have already been opened at SBI, New Delhi, Main Branch."

Case Title: Noel Harper Vs. Union of India