New Delhi, Jan 22 : The Union Home Ministry has issued a stern warning to non-governmental organisations (NGOs) regarding the acceptance of foreign funds without valid registration under the Foreign Contribution (Regulation) Act, 2010 (FCRA). It emphasized that FCRA registration is mandatory for receiving foreign donations and cautioned that violations would attract penal action.

In a public notice, the Ministry reminded all FCRA-registered NGOs and associations to strictly use foreign contributions for the purposes specified during registration or prior approval under the Act. It clarified that no individual or entity could accept foreign funds without obtaining a valid registration certificate or prior government permission.

Renewal and Reporting Obligations

The Ministry highlighted that under Section 16 of the Act, FCRA registration must be renewed within six months before its expiration. According to the Foreign Contribution (Regulation) Rules, 2011, entities whose certificates have expired or been cancelled are prohibited from receiving or utilizing foreign contributions.

The notice pointed out several instances where foreign contributions were credited or debited into the accounts of NGOs that lacked valid FCRA registration, had not obtained prior permission, or had expired or cancelled registrations.

Chartered Accountants’ Role in Monitoring Compliance

The Ministry also called upon chartered accountants to report any FCRA violations by NGOs, reiterating that unauthorized transactions involving foreign contributions would constitute a breach of the Act.

It warned that transactions in FCRA accounts or utilization accounts of NGOs with expired, cancelled, or invalid registrations would be considered a violation of FCRA provisions, making the entities liable for penal action.

The notice serves as a reminder to NGOs of their responsibilities under the FCRA to ensure compliance and avoid legal repercussions.