The Union government is likely to amend the Foreign Contribution (Regulation) Act in the ongoing session of Parliament session. One of the key changes proposed is the appointment of a “designated authority” to take over, manage or dispose of assets created out of foreign funds by an NGO or association, which has had its FCRA registration suspended, cancelled, or not renewed.
Another proposed amendment is expanding the definition of “key functionary” of an NGO beyond an “office bearer/director” to include directors; partners; trustees; the karta (head) of a Hindu Undivided Family; office‑bearers or members of the governing body or managing committee of a society, trust, trade union or association; and any other person who has control over or responsibility for the management or affairs of such an organisation.
The Hindu Explains | What is Foreign Contribution (Regulation) Act, and how does it control donations?
The amendment also proposes to make key functionaries liable for offences under the FCRA, unless they can provide evidence of lack of knowledge, or due diligence.
Registration under the FCRA is mandatory for a non-government organisation to receive foreign funds. Till now, the 2010 parent Act only had the provision to regulate the flow of foreign funds, and not the statutory framework to manage the assets created out of such funds.
