What it does?
governs how indian individuals, associations, NGO, trusts & companies may receive and use money, security, articles sent to them from a source outside india.
does 3 major things:
- identified who may accept foreign contributions & on what conditions
- specified how that money must be received, accounted for & reported
- restricts narrow, defined set of foreign funded actitivies that could affect india’s sovereignty, security, public order
Enforced by MHA
Why foreign contribution needed?
- intl. philanthropy
- developmental partnership in healthcare, edu, disaster relief, scientific research, env conservation
Objective of FCRA
- regulate acceptance of foreign fund
- prevent activities detrimental to national interest / sovereignty
- eg. political destabilization, influening elections
- separatist / secessionist movements
- religious conversions
- insulate india’s democratic institutions (eg. by placing blanket ban on political parties, judges)
- enhancing transparency, accountability
Criticism of FCRA
- vague provisions
- “detrimental to national interest” is a broad term, not defined in act
- Weaponization against dissent
- FCRA used selectively to silence orgs critical to govt policies
- classical hub and spoke model for distributing foreign contribution (from larger org to smaller on ground orgs) is banned
- disproportionately affects orgs working with most marginalized communities without funding
- reduction of administrative expense celing form 50% to 20%
- practical difficulties in maintaining branch in SBI New Delhi (as mandated in act)
- due process deficits in suspension, cancellation procedures
- chilling effect on legitimate civil society activities
Closing: India should align FCRA with UN Declaration on Human Rights Defenders and recommendations of UN Special Rapporteur on Freedom of Association, which recognize right of CSO to seek, receive, utilize resources, including from foreign sources for legitimate rights work.