NGOs up in arms against FCR Bill

Say it will affect their working.

Non-governmental organisations (NGOs) are up in arms against the new Foreign Contribution (Regulation) Bill, 2006, which if enacted would repeal the Foreign Contribution Regulation Act 1976.

The Bill is now with the Standing Committee on Home Affairs for further deliberation and the NGOs have launched a furious drive to get some of the more "draconian" measures removed because if implemented as it is, it will, "affect the working of civil society under the guise of regulating the flow of foreign money".

The Bill's main objective is to stop the inflow of overseas funds purportedly intended to destabilise the nation.

What has alarmed the NGOs are some of the provisions of the Bill that will directly affect their working. The Commonwealth Human Rights Initiative (CHRI) warns that the Bill will legalise a blanket prohibition against foreign contribution to 'organisation of political nature, not being political parties'. This, the NGOs allege is subjective. Under the earlier Act, such an organisation could get prior permission to receive foreign contributions but now there is an absolute prohibition.

The NGOs also say the Centre will now have the authority to decide whether such an organisation is "of a political nature" based on its activities, ideology, programmes or association "with activities of any political party".

"Vesting the government with such unchecked power over the finances of NGOs may foreshadow the death knell of India's vibrant non-profit community," the NGOs say.

The governmental control and restriction on granting the certificate of registration are on the basis of what it construes as 'meaningful activity'.

The Bill states that the Centre will provide a certificate of registration or prior permission for an organisation to receive foreign contributions if the government is satisfied that the applicant "has undertaken meaningful activity in its chosen field for the benefit of the people" or "has prepared a meaningful project for the benefit of the people".

The FCR Bill requires recipients of foreign funds to renew their registration every five years, and introduces fees for registration, renewal and prior approval. At present, registration under the FCRA is permanent and free.

"Renewal provisions such as these are completely unnecessary because all NGOs, whether or not they receive foreign funding, are subject to audits and financial scrutiny under existing legislation such as the Income Tax Act. The registration renewal requirement will generate uncertainty, inconvenience, and more seriously, harassment by petty bureaucrats," CHRI says.

The NGOs are also concerned that the Bill will prohibit any association, company, correspondent and editor engaged in the production or broadcast of audio/audio-visual news or current affairs programme through any electronic mode from receiving foreign contribution.

They say they are puzzled by this because as part of liberalisation in 2002, the Union cabinet had opened up the print media to FDI allowing 26 per cent of foreign equity of the total holdings and in 2005, the UPA Government allowed 20 per cent FDI in private FM Radio Services.