DU, JNU and IITs allowed to accept foreign funds without FCRA registration

Along with Delhi University, Jawaharlal Nehru University and Indian Institute of Technology, all total of 300 institutions across the country have been granted permission to accept foreign donations. An officer of Home Ministry claimed that, there would be no restriction for these institutes to accept any kind of foreign donations even if these institutes are not registered to Foreign Contribution Regulation Act (FCRA).

delhi university to accept foreign funds without fcra registration
Around 300 institutions have been allowed to accept foregin funds withoud FCRA registration

The FCRA registrations of these following universities were cancelled few months ago, as they did not required it any more. As per the new rules, institutions formed under the Act of Parliament or Act of State Legislature or audited by the Comptroller Auditor General of India (CAG) are free to accept any kind of donation from abroad. Some other renowned institutions to accept donation without having registered to FCRA are Gujarat National Law University and Punjab University.

Read more : FCRA registration cancelled for DU and JNU

However, the country provides few sets of regulation for accepting contribution from any foreign organization. Any institute, which is not registered under Foreign Contribution Regulation Act cannot accept donation and if such institute fails to follow such rules then the institution might have to pay penalties for it. However, those who are registered under FCRA are allowed for the acceptance of foreign donations.

Union Home Ministry has cancelled over 16,000 applications alone in the past year seeking FCRA registration. The reason showed by the ministry for the cancellation of application was due to violations of various laws set by Union Ministry including non-filling of annual returns. The purpose of Foreign Contribution Regulation Act is to prevent money laundering. Many of the organizations do not obey the FRCA’s rules & regulations and hence to prevent such misuse of foreign donation, which is to be used for welfare of society or nation, Union Home Ministry had put such strict measures.

As per the report, US based Ford Foundation and Greenpeace International along with 16 other foreign donors have been put under ‘prior permission’ by the ministry for not obeying FCRA rules.

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