NGOs have no basic right to get foreign funds: Centre

NGOs have no basic right to get foreign funds: Centre

FCRA Update To Ensure Money Goes To Stated Use

Dhananjay.Mahapatra@timesgroup.com

New Delhi:22.10.2021

The Union government on Thursday informed the Supreme Court that no NGO had a fundamental right to receive funds from abroad and argued that the provisions of the Foreign Contribution Regulation Act to stop the NGOs from making chain-transfers of foreign funds a business.

In its response affidavit to petitions by several NGOs alleging that the new provisions would stifle their funds and consequently impede their social work, the Centre said the amended section 7 only restricts transfer of foreign contributions to other persons/NGOs once received in India. “An NGO has to utilise it for the purposes for which it has been given a certificate of registration or prior permission by government and there is no discrimination against any NGO in receipt of foreign contribution from any foreign donors,” it said.

On the difficulty posed to thousands of NGOs spread across India by an amendment mandating opening of bank account only in main branch of SBI in New Delhi for receipt of foreign contributions, the Centre said, “Prohibition on transfer of foreign contribution, receipt of foreign contribution in the main branch of SBI in New Delhi and obtaining Aadhaar number, etc of the office bearers, key functionaries and members would improve compliance mechanism, enhance transparency and accountability in the receipt and utilisation of foreign contribution and would not impinge on any fundamental rights of the petitioners. It is directly relatable to activities/programmes detrimental to the sovereignty and integrity of India, public order and interests of general public and for matters connected therewith or incidental thereto.”

It said, “There exists no fundamental right under which any right, legal or otherwise, can be said to include the purported right to receive foreign contributions. Parliament, representing the will of the people, has enacted the Foreign Contribution (Regulation) Act, 2010.”