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

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.