Rs 10802 crore in foreign contribution received by NGOs during 2008-09

By TCN News,

New Delhi: More than Rs 10802 crore has been received in foreign contribution by more than 20 thousand NGOs during 2008-09. The amount is Rs one thousand crore more than that received by NGOs during 2007-08. This information was given in written reply to a question in the Rajya Sabha on 9th March by Minister of State in the Ministry of Home Affairs, Mullappally Ramachandran.

An association with a definite cultural, social, economic, educational or religious programme can obtain foreign contribution either by obtaining ‘registration’ or ‘prior permission’ from the Ministry of Home Affairs, as per the provisions of the Foreign Contribution (Regulation) Act, 1976 and rules made thereunder.

The total number of NGOs which reported receipt of foreign contribution including for social purpose during the year 2008-09 is 20088.

As per the information available, the number and amount of foreign contribution received by associations registered and associations granted prior permission under the Foreign Contribution (Regulation) Act, 1976 during the period 2006-07 to 2008-09 is as follows:

Monitoring of receipt and utilisation of foreign contribution by Associations is done through scrutiny of audited annual returns filed by Associations. After scrutiny of annual audited accounts, in case of any complaint or adverse inputs against an Association indicating violations of the provisions of the Act, an inspection of the books of accounts and records of such Association is carried out and appropriate action is taken under the Act. Where there is no misutilisation /diversion of foreign contribution for undesirable purposes, and after evaluation on a case to case basis, appropriate decision is taken within the extant provisions of FCRA, 1976.

However, if any Association is found involved in serious violations, action is initiated against such Association. Actions include (i) placing the Association in Prior Permission category, (ii) prohibiting it from receiving foreign contribution, (iii) freezing its bank accounts and (iv) prosecuting it in a court of law, the minister informed

Accounts of foreign contribution received by NGOs for the financial year 2009-10 have been received and are being processed, he added.