FCRA amendments will throttle civil society organisations
The Foreign Contribution (Regulation) Amendment (FCRA) Bill, 2020 was among the pieces of legislation with far-reaching consequences passed by Parliament this week without any discussion following the Opposition’s boycott. While the passage of any legislation without adequate stakeholder and public consultation as well as Parliamentary debate is a cause for concern, the FCRA Bill itself signals the state’s deep mistrust of civil society organisations. This is hardly unique to the NDA.
The original act was passed by the Indira Gandhi government in 1976 ostensibly to control foreign funding of political organisations but effectively as a means to control dissent. If the UPA sought to make the Act more restrictive through its ‘consolidating’ update in 2010, the 2020 Bill can only be described as draconian. While multiple aspects of the Bill will effectively throttle the functioning of civil society organisations, the two most egregious are the reduction of the amount of foreign funds that can be spent on administrative expenses from 50% to 20% and the barring of organisations with FCRAs to transfer funds from foreign sources to other such groups.
While the former will stifle organisations working on advocacy, legal interventions, training and research, the latter will starve grassroots groups without the resources to fundraise as several non-profits are also funding organisations. The effects will be a body blow to democracy and freedom as well as to the physical and mental well-being of communities served by non-profit organisations. Ironically, while the Bill is ostensibly aimed at improving transparency, the NDA has twice amended the 2010 Act—through money bills—to allow a flow of funds from foreign companies after a 2014 Delhi HC verdict found both the BJP and Congress guilty of violating the Act.
Although NGOs are often vilified as greedy, corrupt and even communal in public discourse, the sector overall fills the gap in government services. In just the past few months, NGOs have transported stranded migrant workers, helped rebuild lost livelihoods and collaborated with government agencies on outreach work, stepping in often even as the state faltered. Regulations that would make such work virtually impossible deserve more consideration and discussion. Bearing this in mind, the President should send the Bill back to Parliament for a proper study, consultation and debate.