Lok Sabha Question No. 287 (STARRED), answered on 2018-08-07
Subject: Utilisation of Foreign Contributions
Ministry: HOME AFFAIRS
Asked by: HARISHCHANDRA DEORAM CHAVAN, RAM TAHAL CHOUDHARY

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA STARRED QUESTION NO. †*287

TO BE ANSWERED ON THE 07 TH  AUGUST, 2018/ SHRAVANA 16, 1940 (SAKA)

UTILISATION OF FOREIGN CONTRIBUTIONS

†*287. SHRI HARISHCHANDRA CHAVAN: SHRI RAM TAHAL CHOUDHARY:

Will the Minister of HOME AFFAIRS be pleased to state:

(a)  whether  the  Government  has  any  information  regarding  utilization  of foreign contributions received by Non Governmental Organisations (NGOs) for child welfare and education;

(b) if so, the details thereof and the reaction of the Government thereto;

(c) the existing rules/guidelines regarding utilization of foreign contributions received by NGOs for the purpose;

(d) the number of NGOs found guilty of not utilizing the said contributions as per the rules along with the names of the organizations against whom action has been taken during the last three years; and

(e) the outcome of the said action?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS (SHRI KIREN RIJIJU)

(a) to (e): A Statement is laid on the table of the House.

## STATEMENT IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION  NO.  *287  FOR  07.08.2018  REGARDING  'UTILISATION  OF FOREIGN CONTRIBUTIONS'.

(a & b): Foreign Contribution Regulation Act, 2010(FCRA,2010), permits receipt  of  Foreign  Contribution  (FC)  under  five  broad  heads,  namely cultural, economic, educational, social and religious purposes.  Details of FC received and utilized under all these five broad purposes during the last three years are at Annexure-I.

- (c): Guidelines  regarding  utilization  of  Foreign  Contribution  received  by NGOs  are  available  in  the  FCRA,  2010  and  The  Foreign  Contribution Regulation Rules, 2011(FCRR, 2011).  A gist of these is at Annexure -II.

(d) & (e): Registration  of  more  than  13000  associations/NGOs  has  been cancelled  during  last  three  years  for  violations  of  various  provisions  of FCRA, 2010 and Rules made thereunder.  Offences of 86 NGOs have been compounded  by  imposing  penalties  amounting  to  Rs.  3,14,37,649/-  since 2016.    Also,  four  cases  have  been  referred  to  the  CBI  for  investigation during the last three years as detailed below:-

- (i) M/S  Caruna  Bal  Vikash  (CBV),  Zachs  Enclave  First  Floor,  A-3, Second Avenue  Anna Nagar East, Chennai, Tamilnadu.
- (ii) Adhane Management Consultants Private Ltd (AMCPL), Zachs Enclave First Floor,  A-3,  Second  Avenue  Anna  Nagar  East,  Chennai, Tamilnadu.
- (iii) New Life Ministries in India, Gospel Home, Behind TB Chickaballapur, Taluk, District  Chichballapur,  Kolar, Karnataka.
- (iv) M/S Advantage India, 101-102, Oriental House, Gulmohar Enclave, New Delhi.

*************

ANNEXURE -I

## DETAILS  OF  FOREIGN  CONTRIBUTION  RECEIVED  FOR  EDUCATIONAL  AND SOCIAL PURPOSES

| Year    | Social Purpose                | Social Purpose                | Educational Purpose           | Educational Purpose           |
|---------|-------------------------------|-------------------------------|-------------------------------|-------------------------------|
|         | No of NGOs                    | Total FC received             | No of NGOs                    | Total FC received             |
| 2015-16 | 8201                          | 8,920.66 Cr.                  | 5021                          | 4,360.97 Cr.                  |
| 2016-17 | 7878                          | 8,658.24 Cr.                  | 4881                          | 4,160.81 Cr.                  |
| 2017-18 | Final data not yet available. | Final data not yet available. | Final data not yet available. | Final data not yet available. |

TOTAL FOREIGN CONTRIBUTION RECEIVED AND UTILIZED DURING THE LAST 3 YEARS:

| Year    |   No. of FCRA registered NGOs as on 01-08-2018 | Total Foreign Contribution received (excluding interest and sum brought forward from last year) as on 01-08-2018   | Total Foreign Contribution utilized (including interest and sum brought forward from last year) as on 01-08-2018   |
|---------|------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|
| 2015-16 |                                          24197 | 17798.79 Cr.                                                                                                       | 17117.7 Cr.                                                                                                        |
| 2016-17 |                                          23176 | 15329.16 Cr.                                                                                                       | 18108.5 Cr.                                                                                                        |
| 2017-18 |                                           2421 | 588.83 Cr.                                                                                                         | 590.05 Cr.                                                                                                         |

Note  :-    The  above  data  is  as  per  available  Annual  Returns  filed  by  the associations  /  NGOs  as  on  01.08.2018.  However  last  date  for  filing  the Annual Returns for FY 2017-18 is 31st December 2018. Most of the NGOs are likely to file their ARs in the last few weeks of this deadline.

## ANNEXURE -II

## L.S.S.Q NO. *287 FOR 07.08.2018

## SUMMARY  OF  RULES/  GUIDELINES  REGARDING  UTILIZATION  OF  FOREIGN CONTRIBUTION BY NGOS

1. No  person  having  a  definite  cultural,  economic,  educational,  religious  or  social programme shall accept Foreign Contribution unless such person obtains a certificate of registration/prior permission from the Central Government.
2. Registration shall be valid for a period of 5 years.
3. Prior permission shall be valid for a specific purpose for which it is obtained.
4. Associations  should  comply  with  the  following  terms  &  conditions  for  grant  of certificate of registration or grant of prior permission under the Act:-
5. (a)   The person, -
6. (i) is not fictitious or benami;
7. (ii) has  not  been  prosecuted  or  convicted  for  indulging  in  activities  aimed  at conversion through inducement or force, either directly or indirectly, from one religious faith to another;
8. (iii) has  not  been  prosecuted  or  convicted  for  creating  communal  tension  or disharmony in any specified district or any other part of the country;
9. (iv) has not been found guilty of diversion or mis-utilisation of its funds;
10. (v) is  not  engaged  or  likely  to  engage  in  propagation  of  sedition  or  advocate violent methods to achieve its ends;
11. (vi) is not likely to use the foreign contribution for personal gains or divert it for undesirable purposes;
12. (vii) has not contravened any of the provisions of this Act;
13. (viii)   has not been prohibited from accepting foreign contribution;

(b)    The  person  making  an  application  for  registration  under  sub-section  (1)  has  undertaken reasonable activity in its chose field for the benefit of the society for which the foreign contribution is proposed to be utilized;

(c)    The  person  making  an  application  for  giving  prior  permission  under  sub-section  (1)  has prepared a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilized;

(d)  In case the person being an individual, such individual has neither been convicted under any law for the time being in force nor any prosecution for any offence pending against him;

(e)  In  case  the  person  being  other  than  an  individual,  any  of  its  directors  or  office  bearers  has neither  been  convicted  under  any  law  for  the  time  being  in  force  nor  any  prosecution  for  any offence is pending against him;

## ANNEXURE -II L.S.S.Q NO. *287 FOR 07.08.2018

(f)  The acceptance of foreign contribution by the person referred to in sub section (1) is not likely to affect prejudicially-

- (i) the sovereignty and integrity of India; or
- (ii) the security, strategic, scientific or economic interest of the State; or
- (iii) the public interest; or
- (iv) freedom or fairness of election to any Legislature; or
- (v) friendly relation with any foreign State; or
- (vi) harmony between religious, racial, social, linguistic, regional groups, castes or communities;

(g)  The acceptance of foreign contribution referred to in sub-section (1),-

- (i) shall not lead to incitement of an offence;
- (ii)       shall not endanger the life or physical safety of any person.

5.    NGOs  shall  receive  Foreign  Contribution  in  a  single  account  to  be  opened  in  the  PFMS integrated bank and may open one or more accounts in one or more such banks for utilizing the Foreign Contribution. And opening of utilization account shall be intimated to the Ministry within 15 days of opening of account.

6. No  funds other than Foreign Contribution shall be received &  deposited in such account/accounts.

7.   Foreign Contribution received shall be utilized for the purpose for which it has been received.
8.  Any Foreign Contribution or the income arising out of it shall not be used for speculative business.

9. NGO shall not spend more than 50% of Foreign Contribution received in a Financial Year to meet administrative expenses without prior approval of Central Government.

10.  Every  NGO who receives Foreign Contribution under the Act shall submit signed and digitally signed report electronically online in form FC-4 along with financial statements for every Financial Year beginning on 1st day of April within 9 months of the closure of Financial Year.