Govt puts time riders to receipt, utilisation of funds under FCRA

Govt puts time riders to receipt, utilisation of funds under FCRA

Bharti.Jain@timesofindia.com 08.04.2025

New Delhi : Centre has put a three-year limit on NGOs and associations working on specific projects to receive foreign funds after being granted ‘prior permission’ under the Foreign Contribution Regulation Act, 2010, besides setting a four-year timeframe for their utilisation. “Any receipt or utilisation of the foreign contribution beyond the above said time limits shall be a violation of FCRA, 2010, and in case of any violation, necessary punitive action shall be taken,” home ministry said in a public notice issued on Monday. 

At the same time, the ministry left a window open for NGOs unable to receive or utilise foreign contributions in the specified three and four year validity period, respectively, for genuine reasons. It said an extension may be allowed in the validity period for an association/organisation “on a case-to-case basis, based on the merits of the case”. Until now, the validity of ‘prior permission’ granted under FCRA was co-terminus with the duration of the specific projects or activities for which the foreign contribution was obtained and that too from the specified source. 

A fresh ‘prior permission’ would need to be sought to receive foreign contributions for another project/purpose or if the funding was to be accepted from a new source. The ministry said the central govt, in exercise of powers conferred under Section 46 of FCRA, 2010, has directed that the validity period for receiving foreign contribution shall be three years from the date of approval of the application for prior permission. For utilising the foreign contribution, the validity period would be four years from the date of approval of the application for prior permission, it specified. 

The ministry further clarified that for ‘prior permission’ applications which have already been approved and where the remaining period of the approved project in the prior permission is more than three years, the above time limit shall be reckoned from date of issue of this order — April 7, 2025 — instead of the date of approval of the application for prior nod.