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”, and of “questionable merit”. The bill, they argue, would “stifle” and “choke” the working of hundreds of voluntary organisations.

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

On December 18 last year, the centre-Left United Progressive Alliance government in New Delhi introduced this bill in the Rajya Sabha (upper house of parliament). 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 is “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.”

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.

The bill states that the federal government will provide a certificate of registration or give prior permission to an organisation to receive foreign contributions if it is satisfied that the applicant “has undertaken meaningful activity in its chosen field for the benefit of the people.” NGOs say the word “meaningful” and the phrase “benefit of the people” are both open to discretionary interpretation and the same is true for what constitutes “foreign hospitality”.

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.

“Who decides what constitutes political activity and what kind of activity is meaningful?” asks Rajesh Tandon, president of an NGO called Participatory Research in Asia. Tandon found it ironical that one wing of the Indian government (the interior ministry) was attempting to restrict the activities of NGOs while another (the Planning Commission) was asking civil society organisations to supplement the government’s developmental efforts.

While the Indian government claims the bill would check the use of foreign funds for subversive activities of terrorists and ‘anti-national’ organisations, NGOs argue that

the proposed new law could block funding for valuable and legitimate civil society activities. — IPS