Tamil Nadu has highest number of NGOs which receive foreign funding

Tamil Nadu has the highest number of active non-governmental organisations (NGOs) in the country which receive foreign funding.

As per the Foreign Currency Regulation Act (FCRA) data, there are 2,468 NGOs in Tamil Nadu which are active with FCRA registrations, 2,577 NGOs’ FCRA registrations have been cancelled and 1,459 NGOs’ registrations expired for various reasons.

After 2014, the number of NGOs receiving foreign donations declined massively as strict rules were put in place. As of date, 16,623 NGOs are active and receive foreign donations and more than 20,000 registrations have been cancelled and more than 12,000 registrations have expired across the country.

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Among the NGOs which have lost their FCRA registrations, many belong to minority communities. FCRA registrations are required to get funds from abroad. Of the registrations scrapped, more than 30 Christian NGOs have lost their registrations in Chennai.

Maharashtra second

Maharashtra has the next highest number of NGOs which are active with FCRA registrations. The state has 1,817 active registrations. Karnataka (1,453) and Andhra Pradesh (1,145) are next with the maximum FCRA registrations.

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The Union Home Ministry refused to renew the registrations of the majority of the NGOs as they did not fulfil the required criteria.

“The FCRA registrations of these organisations were cancelled mostly due to their failure to submit annual income and expenditure statements on foreign funding for up to six years despite repeated reminders,” said an NGO chief who is also a member of Voluntary Action Network India (VANI).

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As per FCRA guidelines, registered associations are required to submit electronically an online annual report with scanned copies of their income and expenditure statement, receipts and payment account, balance sheet, etc., for every financial year within nine months of the closure of the financial year.

Any organisation, association or NGO in India cannot receive foreign funds if they do not have a license under the FCRA, which is regulated by the Home Ministry.

A few NGOs whose registrations were cancelled were involved in providing support to people affected by leprosy. In the last 10 years, the Union government has cancelled FCRA licenses of over 20,600 NGOs. Most of these cancellations were done on account of the non-filing of annual returns.

In Tamil Nadu, some of the NGOs whose registrations were cancelled were involved in the protests against Kudankulam nuclear units in 2011-12.

Also read: CBI registers case against Tamil Nadu NGO under FCRA

“As per the FCRA amendment, the NGOs can receive foreign contributions only through the State Bank of India branch in New Delhi with effect from 1st April 2021. Most of the NGOs complied with formalities and forwarded their application to SBI, New Delhi but the bank is yet to open accounts,” said the VANI member.

There are certain NGOs whose applications are pending with the Union home ministry after the approval of the opening account with the SBI. “Others have received FCRA approval online but are waiting for the letter from MHA. Without this letter, the SBI is not giving them permission to receive funds or use the account,” complained the member.

Also read: Oxfam, Jamia, IIT, IMA among more than 12,000 entities to lose FCRA licence

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