NEW DELHI: Non-governmental organisations (NGOs) in India are up in arms against moves by the federal government to regulate the flow of foreign funds into their coffers through a new bill that would amend existing law governing contributions from abroad.

Spokespersons for civil society groups describe the bill as “draconian”, “dangerous” and of “questionable merit”. The bill, they argue, would “stifle” and “choke” the working of hundreds of voluntary organisations, many of them engaged in alleviating poverty and empowering the underprivileged.

NGO workers also say the move is inexplicable at a time when the government is actively encouraging the inflow of foreign direct investments (FDI) in the corporate sector.

On Dec 18 last year, the centre-Left United Progressive Alliance government in New Delhi introduced this bill in the Rajya Sabha (upper house of parliament) without much fanfare. The proposed legislation is called the Foreign Contribution (Regulation) Bill, 2006, which, if enacted, would repeal and replace the Foreign Contribution (Regulation) Act (FCRA) of 1976.

The objectives of the bill have been spelt out in its very first sentence which states that it is meant “to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.”

Currently being deliberated upon by the Indian Parliament’s Standing Committee on Home Affairs that comprises members from different political parties, the bill calls for a prohibition of foreign contributions to organisations of a “political nature, not being political parties”. Under the existing law, such “political” organisations can receive foreign funds after they obtain the prior permission of the federal interior ministry that administers the FCRA.

Whereas registration of an NGO is permanent and free under the current FCRA, the bill requires recipients of foreign funds to renew their registration every five years and introduces a scheme of payment of fees for registration, renewal of registration and prior approval for receipt of funds. Representatives of civil society groups say this provision in the bill would not only generate inconvenience but could also lead to harassment by government officials.

“The bill goes beyond tracking the use of foreign money and intrudes into the management of NGOs in ways that I believe are illegitimate,” added Daruwala, who is in the forefront of a campaign against the bill. —Dawn/The IPS News Service