New Delhi, June 20 ():NGOs will have to comply stringent regulatory norms and produce compliance reports to get funds from abroad.
The Centre has banned direct funding from overseas to NGOs operating in India. This move is seen as the start of a process to block foreign aid to NGOs, which it sees, are engaged in stalling developmental activities in the country on various counts.
It has cracked down on NGO Greenpeace and thousands of other voluntary organisations receiving foreign funds. The Ministry of Home Affairs has instructed the Reserve Bank of India to take permission of the FCRA (Home Ministry’s Foreign Contribution Regulation Act) Department before clearing any foreign fund to Greenpeace India. This order issued on June 13, will halt direct funding of NGOs from abroad since each contribution has to be cleared by RBI on a case-to-case basis.
The RBI has been asked to issue orders to all banks. MHA in an attempt to tighten the noose around NGOs, has directed that in addition to FCRA clearance, they will have to inform the RBI about the source of foreign funds and its usage. This instruction has come after the Intelligence Bureau report to the Government on the role of certain NGOs, that are over two lakh working in India; this order will affect 40,000 groups that get foreign funds.
The UPA Government amended the Foreign Contribution Regulation Act in 2010 with more stringent provisions. Prime Minister Manmohan Singh too had blamed US-backed NGOs for hindering development work in India.
Singh had faced stiff opposition by NGOs for allowing genetically modified crops and nuclear power plant at Koodankulam. IB has identified 12 foreigners who are spearheading protests through NGOs.
Anti-nuclear activist SP Udayakumar has sent a legal notice to the Union Home Ministry seeking legal action against Joint Director of IB for defaming him by leaking the secret IB report to media.
On May 2013, CAPART (Council for Advancement of People`s Action and Rural Technology) which works with rural NGOs had blacklisted 886 groups for submission of fake documents, misappropriation of money and non-execution of work order.