Why Home Ministry sends notice to 10,000 NGOs: Explained

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Home Minister Rajnath Singh
The Ministry of Home Affairs on Tuesday issued show-cause notices to over 10,000 non-governmental organisations (NGO) registered under the Foreign Contributions (Regulation) Act, 2010 (FCRA).

What is the issue?

  • The Home Ministry has issued notices for failing to file mandatory annual returns for three successive years starting 2009-2010. 
  • It has asked over 10,000 NGOs, why their licences should not be cancelled after they failed to file their annual returns of foreign aid.
  • The Home Ministry orders also said the NGOs which have filed returns should furnish copies and proof of submission.
  • Andhra Pradesh accounts for the largest number of defaulting associations (1,441), followed by UP (1,167) and Tamil Nadu (1,108).

What Data say?

  • A MHA report says there are more than 20 lakh NGOs but less than 2 per cent of them (43527) were registered till March 31, 2012.
  • According to a Home Ministry report, NGOs receive over Rs 11,500 crore in foreign funds annually.
  • Crackdown on NGOs
  • Earlier this year, the Ministry issued notice to 22,702 of the 43,527 registered NGOs under FCRA.
  • They had failed in submitting annual return under Foreign Contribution (Regulation) Act. 
  • The Ministry had invoked section 46 of FCRA.

Who are main defaulters?

  • Some of the defaulters' are the University of Delhi, Jawaharlal Nehru University.
  • Supreme Court Bar Association, Indian Council for Agriculture Research 
  • YMCA units in many States.

What are the rules?

  • As per rules, associations registered under FCRA 2010 must submit annual report in Form FC-6 to Union Home Secretary.
  • It should be accompanied by an income and expenditure statement, receipt and payment account, balance sheet for every financial year.
  • It should be filed within nine months of closure of the financial year. 
  • Associations which do not receive any foreign contribution are also required to furnish a 'NIL' return.
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