Lok Sabha Question No. 2944 (UNSTARRED), answered on 2016-03-15
Subject: Illegal Funds Received by NGOs
Ministry: HOME AFFAIRS
Asked by: RAJESH KUMAR DIWAKAR, J.C. DIVAKAR REDDY, S. RAJENDRAN, BHAGWANTH KHUBA

## GOVERNMENT OF INDIA MINISTRY OF HOME AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 2944

TO BE ANSWERED ON THE 15 TH  MARCH, 2016/PHALGUNA 25, 1937 (SAKA)

## ILLEGAL FUNDS RECEIVED BY NGOS

2944.

SHRI RAJESH KUMAR DIWAKER:

SHRI J.C. DIVAKAR REDDY:

SHRI S. RAJENDRAN:

SHRI BHAGWANTH KHUBA:

Will the Minister of HOME AFFAIRS be pleased to state:

(a)  whether  the  Government  is  aware of  the  illegal  funds  received  by Non-Governmental Organisations (NGOs) in the country;

(b)  if  so,  the  details  thereof  and  the  number  of  such  cases  reported during each of the last three years and the current year, country, NGO and State-wise;

(c)  whether  the  Government  has  cancelled  the  licences  of  NGOs receiving foreign funds, if so, the details thereof and the total number of licence cancelled during the said period, NGO and State-wise including Karnataka;

(d)  whether  cases  of  fake  address  have  also  been  detected  while initiating proceedings against NGOs under Foreign Contribution Regulation  Act  (FCRA),  if  so,  the  details  thereof  and  the  action  taken against such NGOs during the said period, NGO and State-wise; and

(e) the steps taken by the Government to check such cases in future and to stop illegal flow of funds to NGOs in the country?

## ANSWER

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

(a) & (b):  The Ministry of Home Affairs is mandated to administer the

Foreign  Contribution  (Regulation)  Act,  2010  (FCRA,  2010)  and  Foreign Contribution  (Regulation)  Rules,  2011  (FCRR,  2011),  for  regulating  the receipt and utilization of Foreign Contribution by the Associations/NGOs for  charitable  purposes.    FCRA,  2010  and  FCRR,  2011  came  into  force with  effect  from  01.05.2011.    Complaints/inputs  are  received  from various  sources  including  security  agencies  of  the  alleged  receipt  of foreign  contribution  without  obtaining  the  permission  of  the  Central Government  under  Foreign  Contribution  Regulation  Act,  2010(FCRA, 2010). Action against such violation is taken after conducting inspection  of  the  records  and  accounts  giving  due  opportunity  to  the concerned  association/NGO.      In 2014, penalty amounting  to  Rs. 51,99,526/-  on  24  associations  and  in  the  year  2015  an  amount  of Rs.80,11,010/-  on  7  associations    for    compounding  the  offence  for receipt and utilization of foreign contribution without obtaining registration or prior permission under the FCRA, 2010 was imposed.

(c) to (e):  Instances  of  some  non-Government  Organizations  violating provisions  of  the  FCRA  and  FCRR  have  come  to  Government's  notice. Since  implementation  of  FCRA,  2010  and  FCRR,  2011,  notices  were issued to around 21,000 associations in 2011 and to 10,343 associations

in  2014  for  not  filing  annual  returns  continuously  for  three  years. Consequently,  registration  of  4138  associations  was  cancelled  in  July 2012 and of 10,117 in March 2015 after issue of show cause notices to such  associations  and  giving  them  adequate  opportunity.  State  wise number of associations, including Karnataka, whose FCRA registrations were cancelled during the said period is at annexure-I & II.  Names  of associations  against whom actions of cancellation has been taken are available on the website www.fcraonline.nic.in of the Ministry of Home Affairs.

Recently,  a  number  of  steps  have  been  taken  for  enhancing  the transparency, accountability and effective monitoring of foreign contribution  received  by  the  associations  registered  under  the  FCRA, 2010.    The  old  system  of  FCRA  monitoring  has  been  replaced  with 'Online System', for facilitation of all stakeholders and effective monitoring.  Certain  amendments  have  also  been  made  in  the  Foreign Contribution  (Regulation)  Rules,  2011  (FCRR,  2011).    Number  of  online forms  have    been  reduced  and  simplified.    The  bank  accounts  of  the associations  under  FCRA    have  also  been  linked  to  Public  Financial Management System (PFMS) for better monitoring.  Integration of Bank Payment Gateway has been made functional to facilitate online payment of fees, etc. by various applicants.

State wise number  of associations whose  FCRA  registration cancelled  during  2015    for    not  filing  Annual  Returns    for  the financial years 2009-2010, 2010-11 and  2011-12

| State/U.T                 |   No of Association |
|---------------------------|---------------------|
| Andaman & Nicobar Islands |                   7 |
| Andhra Pradesh            |                1420 |
| Arunachal Pradesh         |                  27 |
| Assam                     |                 126 |
| Bihar                     |                 642 |
| Chandigarh                |                  14 |
| Chhattisgarh              |                  34 |
| Daman and Diu             |                   1 |
| Delhi                     |                 391 |
| Goa                       |                  46 |
| Gujarat                   |                 365 |
| Haryana                   |                  75 |
| Himachal Pradesh          |                  46 |
| Jammu & Kashmir           |                  36 |
| Jharkhand                 |                 114 |
| Karnataka                 |                 805 |
| Kerala                    |                 527 |
| Madhya Pradesh            |                 195 |
| Maharashtra               |                 967 |
| Manipur                   |                 289 |
| Meghalaya                 |                  33 |
| Mizoram                   |                  15 |
| Nagaland                  |                  56 |
| Orissa                    |                 630 |
| Pondicherry               |                  14 |
| Punjab                    |                  68 |
| Rajasthan                 |                 149 |
| Sikkim                    |                  10 |
| Tamil Nadu                |                1068 |
| Tripura                   |                  14 |
| Uttar Pradesh             |                1147 |
| Uttarakhand               |                  48 |
| West Bengal               |                 738 |
| Grand Total               |               10117 |

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## LS.USQ.No. 2944 FOR 15.3.2016

State wise number  of associations whose  FCRA  registration cancelled  during  2012    for    not  filing  Annual  Returns    for  the financial years 2006-2007,2007-08 and  2008-09

| State/U.T          | No of Association   |
|--------------------|---------------------|
| Andhra Pradesh     | 670                 |
| Arunachal Pradesh  | 6                   |
| Assam              | 4                   |
| Bihar              | 20                  |
| Chandigarh         | 6                   |
| Chhattisgarh       | 7                   |
| Dadra Nagar Haweli | 1                   |
| Delhi              | 299                 |
| Goa                | 10                  |
| Gujarat            | 158                 |
| Haryana            | 21                  |
| Himachal Pradesh   | 23                  |
| Jammu & Kashmir    | 5                   |
| Jharkhand          | 9                   |
| Karnataka          | 296                 |
| Kerala             | 450                 |
| Madhya Pradesh     | 92                  |
| Maharashtra        | 352                 |
| Manipur            | 128                 |
| Meghalaya          | 9                   |
| Mizoram            | 2                   |
| Nagaland           | 35                  |
| Orissa             | 160                 |
| Pondicherry        | 6                   |
| Punjab             | 7                   |
| Rajasthan          | 110                 |
| Tamil Nadu         | 794                 |
| Uttar Pradesh      | 72                  |
| Uttarakhand        |                     |
|                    | 2                   |
| Grand Total        | 4138                |