Wednesday, November 10, 2021

No foreign funds for NGOs if purpose not declared: SC


No foreign funds for NGOs if purpose not declared: SC

AmitAnand.Choudhary@timesgroup.com

New Delhi:11.11.2021

The Supreme Court on Tuesday said NGOs should not be allowed to receive foreign funds if the donor did not declare the purpose for which the money is to be spent and said the Centre has diluted the intent of Foreign Contribution Regulation Act (FCRA) by not insisting on such a provision.

A bench of Justices A M Khanwilkar, Dinesh Maheshwari and C T Ravikumar said as per Section 8 of the Act, disclosure has to be made at the outset regarding the purpose for which a contribution has been made and asked the Centre to make its stand clear on the issue.

Section 8 says every person who is registered and granted a certificate or given prior permission under the Act and receives any foreign contribution, shall utilise such contribution for the purposes for which the contribution has been received.

Referring to the section, the bench said the purpose of the contribution has to be disclosed and only then would inflow of funds be allowed. Solicitor general Tushar Mehta contended that an NGO can use the fund for activities for which they are registered which could be social, cultural, religious purposes.

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