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Washington DC: The US is seeking a clarification on the revocation of Foreign Contribution Regulation Act (FCRA) licences of 8,975 non-governmental organisations (NGOs) by the Indian Ministry of Home Affairs

Acting Spokesperson of US Department of State Marie Harf, while replying to a pointed query on the cancellation of licenses of NGOs at her daily press briefing here on Thursday said: “we are seeking a clarification on this issue with the appropriate Indian authorities.”

When Ms. Harf was asked whether or not any clarification regarding action taken by the Indian authorities vis-a-vis Greenpeace and Ford Foundation had been received, her reply was: “I’m not sure. Let me check.”

The Indian Ministry of Home Affairs has decided to place the US based Ford Foundation, on the ‘prior permission’ list citing the reason as “national interest and security”. Under the latest dispensation money and grants from Ford Foundation to NGOs in India will be screened by the MHA.

On April 9, MHA ha dissued an order suspending the registration under FCRA, 2010 of Greenpace, India Society for a period of 180 days. MHA order against Greenpace states that on inspection of accounts and records of this organisation, it was found that it had first transferred Foreign Contribution receoved in the FCRA designated bank account to FCRA utilization account and from there five other bank accounts without informing the concerned authority and this was in violation of Rule 9(1) (e) of FCRR, 2011.

The MHA order against Greenpeace further points out that the most glaring example is the opening balance for 2008-09, which was reported Nil in the auditor’s certificate but was actually Rs. 6,60,31,783. Greenpace later admitted that it was a typgraphical error

As per Rule 17(1) of Foreign Contribution (Regulation) Rules 2011 (FCRR 2011), every person who receives foreign contribution is required to submit Annual Accounts for each financial year within a period of nine months from closure of the year (by December 31).

In 2014, notices were issued to 10343 associations that had filed annual returns for financial year 2009-10 to 2011-12. Sufficient time was given to NGOs to respond, but no response was received.

Registration of 1142 associations in Andhra Pradesh who neither filed returns nor responded to show cause notice was cancelled on March 3, 2015.

As per Gazette Notification S.O. 1492(E) dated July 1, 2011, the Government has exempted all bodies constituted or established by or under a Central Act or State Act requiring to have their accounts compulsorily audited by the Comptroller and Auditor General of India from the operation of all the provisions of the Foreign Contribution (Regulation) Act, 2010.

On April 9, MHA had discussed an order suspending the registration under FCRA, 2010 of Greenpace, India Society for a period of 180 days. MHA order against Greenpeace states that on inspection of accounts and records of this organisation, it was found that it had first transferred Foreign Contribution received in the FCRA designated bank account to FCRA utilization account and from there five other bank accounts without informing the concerned authority and this was in violation of Rule 9(1) (e) of FCRR, 2011.

The MHA order against Greenpeace further points out that the most grlaring example is the opening balance for 2008-09, which was ereported Nil in the auditor’s certificate but was actually Rs. 6,60,31,783. Greenpeace later admitted that it was a typographical error.