MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS(SHRI SRIPRAKASH JAISWAL)
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT IN REPLY TO PARTS (a) TO (e) OF LOK SABHA UNSTARRED QUESTION NO. 898 FOR 4TH MARCH,
2008
(a) & b): NGOs in India are permitted to receive foreign contribution under the Foreign
Contribution (Regulation) Act, 1976, from foreign sources for bona fide activities in cultural,
economic, educational, social or religious fields after obtaining registration/prior permission
under the said Act. The registration/prior permission is granted after due verification of a
ctivities and antecedents of the NGO and its office bearers. The amount of receipt of foreign
contribution reported by the NGOs during the last three years is as under:-
Year Amount (Rs. in Crores)
2003-04 5105.50
2004-05 6256.68
2005-06 7877.57
(c): Associations that are registered or which have obtained prior permission under the Foreign
Contribution (Regulation) Act, 1976 are required to submit annual returns of receipt and
utilization of foreign contribution duly certified by a Chartered Accountant within nine months
after the closure of the financial year. On a review of submission of annual return, 8673
registered associations, which did not submit mandatory returns for consecutive three years i.e.
2001-02, 2002-03 and 2003-04 were placed in the prior permission category vide Ministry’s
Notification dated 26.10.2005. Subsequently, registration of 337 associations, which submitted
the proof of submission of returns, was restored.
(d) & (e): As and when, any complaint relating to the violation of the provisions of the
Foreign Contribution (Regulation) Act, 1976 comes to the notice of the Government, appropriate
action is taken under the Act. Monitoring of receipt and utilization of foreign contribution by
associations is done through a scrutiny of the audited annual returns filed by the associations
as well as through the inspection of accounts and records of the associations by the Monitoring
Unit set up for the purpose. A facility for online submission of statutory annual returns has
been introduced to facilitate better monitoring of receipt and utilization of foreign contribution. If any association is found involved in misutilisation/diversion of foreign contribution,
action is initiated against the association. Such action includes
(i) placing the Association in
Prior Permission category,
(ii) prohibiting it from receiving foreign contribution,
(iii)
prosecuting it in a court of law and
(iv) freezing its bank accounts. In case of serious violations,
where it is found that the contribution is being diverted for purposes other than the stated
objectives of the association, the matter is referred to Central Bureau of Investigation (CBI)
for a detailed investigation and prosecution, if necessary.
On the basis of the complaints received and inquiries made, 45 associations have been
prohibited from receiving foreign contribution, 26 Associations have been placed in Prior
Permission category, and accounts of 11 Associations have been frozen. A list of the associations
against which action has been taken for violation of various provisions of the Act, is available
on MHA’s website: (http://mha.nic.in/fore.htm). 17 cases have been referred to CBI for detailed
investigations for FCRA violations.
