NGOs warned of penal action if funds received without FCRA certificate | India News


NGOs warned of penal action if funds received without FCRA certificate

NEW DELHI: The home ministry on Tuesday warned NGOs of penal action if they have been receiving and/or utilising FCs (foreign contributions) after their FCRA certificate has been cancelled or its validity expired.
In a notification, the ministry said all NGOs receiving foreign funds have to be mandatorily registered or granted prior permission under Foreign Contribution Regulation Act (FCRA) and must utilise such funds only for the purposes they were received.
Besides, NGOs who are granted FCRA registration certificate must renew it within six months before expiry of validity of such certificate. If renewal is not applied for and their registration ceases to exist, they cannot receive or utilise FCs, it pointed out.
The ministry said, “Any transaction in FCRA accounts/FCRA utilisation accounts of the NGO/association whose FCRA registration has been cancelled or ceased or validity expired would amount to violation of FCRA 2010 and is liable for penal action.”





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