The Lok Sabha on Monday passed the amendments to Foreign Contribution (Regulation) Act, 2010 that seek to make Aadhaar mandatory for NGOs to receive foreign funds.
The amendments seek to streamline the provisions of the FCRA by strengthening the compliance mechanism, enhancing transparency and accountability in the receipt and utilisation of foreign contribution worth thousands of crores of rupees every year, the government had said on Sunday.
Once the bill is cleared by the upper house and gets assent from President Ram Nath Kovind, public servants will be barred from receiving foreign funding.
Also, Aadhaar card will be mandatory for all office bearers of NGOs and other organisations which are seeking funds from foreign sources.
The amendments will limit the use of foreign funds received under FCRA for administrative purposes from the current limit of 50% to 20%.
“The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the said Act. Many of them were also found wanting in ensuring basic statutory compliances such as submission of annual returns and maintenance of proper accounts,” the proposed amendment states.
“This has led to a situation where the central government had to cancel certificates of registration of more than 19,000 recipient organisations, including non-governmental organisations, during the period between 2011 and 2019,” it added.
On getting clearance from the Rajya Sabha and the President, the amended act will empower the government to ask a violator to not use the funds by holding a “summary inquiry”.