Transfer of foreign funds from NGOs to its associations witness steep fall in FY 2020-21: MoS Home

The transfer of foreign funds received by parent Non-Governmental Organisations (NGOs) to its associations has witnessed a steep fall in the financial year 2020-21, Minister of State for Home Affairs Nityanand Rai informed on Tuesday.

In a reply to a question over foreign contribution to NGOs, Rai said that in the financial year 2020-21 just 69 NGOs transferred Rs 38.91 crore foreign funding as compared to Rs 1314.40 cr transferred by 729 NGOs in the year 2019-20.

Hyderabad MP Asaduddin Owaisi had asked questions on whether new provisions were made under Foreign Contribution Regulation Act (FCRA) and NGOs under section 7 restricting the transfer of foreign contribution to other persons/NGOs once received in the country and if so, the number of such cases came to the notice where NGOs were found transferring such funds.

Rai replied that the Foreign Contribution (Regulation) Amendment Act, 2020 was enacted by the Parliament and notified on September 2020 by an amendment in section 7 of the Foreign Contribution (Regulation) Act, 2010 transfer of Foreign Contribution has been prohibited.

"In the financial year 2020-21, a total of 69 NGOs reported Rs 38.91 crore transfers of foreign contribution funds. In the year 2019-20, 729 NGOs transferred foreign contribution of Rs 1314.40 crore while in the financial year 2018-19, a total of 823 NGOs transferred Rs Rs 1246.45 crore funds from foreign," the MoS added.

On being asked whether these steps taken by the Government has affected many NGOs to perform their social work especially in the field of the health sector, those who are working at the grass-root level for community development and awareness, Rai replied that prohibition on transfer does not in any way hampers the functioning of any genuine NGO.

Owaisi further asked the details and steps taken or being taken by the Government to address the concern raised by the NGOs as well as regulate NGOs for utilization of funds judiciously received for special purposes.

To this, Rai replied that any NGO is free to obtain a certificate of registration or prior permission by complying with the legal requirement of the Foreign Contribution (Regulation) Act, 2010 and the Foreign Contribution (Regulation) Rules, 2011. NGOs with valid certificates of registration or prior permission may obtain Foreign Contribution and carry out the permitted activities.

( With inputs from ANI )