AccountAid Capsules 2002 (59-131)

According to FCRA rules, the form should be filed only once a year. The form should contain details of all donations (cash, kind, shares etc.) received during the year from April to March. The form should reach Ministry of Home Affairs by 31st July.

[FCRA means Foreign Contribution Regulation Act, 1976.

Also see:

- Rule 8 of FCRA Rules, 1976

- AccountAble 20 'How to Fill Up FC-3' at www.AccountAid.net]

60: Where is the new FCRA?

(7-Jan-02)

The new FCRA could not make it to the Parliament in this session also. Apparently, the bill was not even listed on the agenda. So the suspense

continues.

In the meanwhile, please note that the draft bill remains a state secret till it is tabled in the Parliament. So no one can really say what it contains, and whether it's good or bad for the voluntary sector.

[References:

Also see AccountAid Capsules 9, 10, 33, 53 and 54 at www.AccountAid.net]

61: Tax Exemption for NGOs

(9-Jan-02)

The Economic Times conducted an internet-based poll yesterday, with some strange results:

“Should the government scrap tax exemption for charitable bodies [in India]?

Yes 93%

No 7%

Can't Say 0%”

The Times of India, when reporting this, was charitable enough to add a disclaimer: ‘The poll reflects the opinions of Net users who chose to participate, and not necessarily of the general public.’

[References:

Economic Times ‘ET Insta Poll’ of 8-Jan-02 at http://economictimes.indiatimes.com/

The Times of India, New Delhi, 9-Jan-02, p.15]

62: Dual Citizenship and FCRA

(12-Jan-02)

The Government of India has recently promised dual citizenship to the Indian Diaspora. It is estimated that about 2 crore (20 million) Indians live abroad. This includes NRIs and PIOs.

What would this mean, so far as FCRA is concerned? Will donations of the dual-citizenship status Indians be treated as Indian funds? Or will FCRA still apply to their donations?

Surprisingly, a literal interpretation of the Act indicates that their money will still be foreign contribution. How?

Section 2(1)(e) lists a citizen of a foreign country as a ‘foreign source’. A person with dual-citizenship may be an Indian, but will also be citizen of a foreign country…!

[References:

Section 2(1)(e)(x) of FCRA, 1976

FCRA means Foreign Contribution (Regulation) Act, 1976. Applicable in India

NRI: Non-resident Indian; PIO: Person of Indian Origin.

The Straits Times, ‘India to allow dual citizenship’, Jan 10, 2002, http://straitstimes.asia1.com.sg/primenews/story/0,1870,95616,00.html ]

63: FCRA Registration Statistics

(11-Feb-02)

How many NGOs get FCRA registration each year? We have the figures for last seven years:

94-95: ~690

95-96: ~1300

96-97: ~800

97-98: ~760

98-99: 1336

99-00: 1419

00-01: 1613

The above trend possibly indicates a more liberal attitude to FCRA registration.

[References:

-MHA web-site http://mha.nic.in/

-MHA Annual Report for 2000-01

FCRA stands for Foreign Contribution (Regulation) Act, 1976. Applicable in India

Figures for 94-95 to 97-98 are approximations based on an MHA chart.]

64: Foreign Contribution in 99-00

(12-Feb-02)

According to the Home Ministry report for 99-00,

- 13,986 organisations filed their FC-3;

- These organizations received a total of Rs. 3,924.63 crores;

- 735 organisations in Delhi received Rs. 636.10 crores;

- USA contributed the maximum funds: Rs.1,086.32 crores;

- Among Islamic countries, Saudi Arabia gave Rs.17.27 crores.

- And even Iraq sent us Rs.3,000!

[References:

-‘Videshi chanda prapti mein aniyamitata rokne barey kade kanoon par vichar’. Punjab Kesri, Delhi. P.4. 13-Feb-02.

-AccountAid Capsule 13

-FCRA stands for Foreign Contribution (Regulation) Act, 1976. Applicable in India

-A crore is equal to 10 million.]

65: More on the new FCRA Bill

(13-Feb-02)

According to the Home Ministry, the new FCRA is likely to have tighter provisions to reduce irregularities in accounting of foreign contribution.

[References:

-‘Videshi chanda prapti mein aniyamitata rokne barey kade kanoon par vichar’. Punjab Kesri, Delhi. P.4. 13-Feb-02.

AccountAid Capsule 10

FCRA stands for Foreign Contribution (Regulation) Act, 1976. Applicable in India.]

66: Foreign contribution and Hawala

(14-Feb-02)

According to the Home Ministry sources, separatists and terrorist groups mostly receive funds through hawala channels. The money often comes from Bangkok and Dubai.

The Ministry has instructed its intelligence agencies to crack down on Hawala agents to control this menace.

[References:

-‘Videshi chanda prapti mein aniyamitata rokne barey kade kanoon par vichar’. Punjab Kesri, Delhi. P.4. 13-Feb-02.

-AccountAid Capsule 10

-FCRA stands for Foreign Contribution (Regulation) Act, 1976. Applicable in India

-‘Hawala’ literally means ‘reference’. This emerged as a popular mode of illegal transfer of money and foreign currency in the seventies.

-A crore is equal to 10 million.]

67: Top receivers of foreign contribution

(14-Feb-02)

According to the Home Ministry sources, some Hindu organizations are among the largest recipients of foreign contribution. These include Maharishi Ved Vigyan Vishwa Vidyapeeth (Rs.68.09 crores), Mata Amritanandmayi Mission (Rs.53.07 crores), and Sri Satyasai Central Trust (Rs.50.15 crores).

[References:

-‘Videshi chanda prapti mein aniyamitata rokne barey kade kanoon par vichar’. Punjab Kesri, Delhi. P.4. 13-Feb-02.

FCRA stands for Foreign Contribution (Regulation) Act, 1976. Applicable in India

A crore is equal to 10 million.]

68: Elections and foreign funding-1

(19-Feb-02)

The following comment appears in a report prepared by the ACE Project on Administration and Cost of Elections in April 1999:

“Secret Money Provided By Foreign Governments

Governments have traditionally used secret service funds to bribe (or, putting it differently, to assist) prominent foreign politicians and their election campaigns. Other political uses of secret service funds have included payments to foreign trade unions and to foreign newspapers.

Such payments have a long history. In modern times, the 'Reptile Fund' used by the German Chancellor, Otto von Bismarck, provided a precedent followed by subsequent German regimes. During the First World War, the German Foreign Ministry encouraged the Bolsheviks by sending them money through devious routes across the Baltic. Hitler used similar techniques. After the Second World War and at least until the 1970s, a secret 'Chancellor Fund' was at the disposal of successive West German Chancellors. Secret payments to Chilean politicians in the 1960s and to Portuguese and Spanish anti-Communists in the 1970s reportedly came from this source… ”

continued in capsule 69

[References:

The ACE project is titled ‘Administration And Cost Of Elections’. It is a joint endeavour of IFES, UN-DESA and IDEA. These comments have been taken from the draft report on the Internet http://www.aceproject.org/main/english/pc/pcd02h.htm. Copyright 1999]

69: Elections and foreign funding-2

(19-Feb-02)

The following comment appears in a report prepared by the ACE Project on Administration and Cost of Elections in April 1999:

“Secret Money Provided By Foreign Governments

Continued from capsule 68:

…As revelations following the fall of the Soviet regime have shown, the Soviet Union provided regular funds to foreign Communist parties and to pro-Communists organisations.

Soon after its formation in 1947, the Central Intelligence Agency of the United States also became active in making payments to anti-Communist politicians, parties, and trade unions in a large number of foreign countries. In the era of the Cold War, political parties in Africa and elsewhere reportedly received financial support from the Soviet Union and from China as well as from the United States. Some oil-rich countries such as Libya are also alleged to have been active in providing money for foreign political causes.”

[References:

70: Shades of FCRA in other countries

(20-Feb-02)