Govt freezes accounts of 46 NGOs using foreign funds

In a major crackdown on the rising flow of foreign funds to NGOs, the government has frozen accounts of 46 such organisations and prohibited another 41 from receiving and utilising foreign funds in future.

Information available with DNA suggest that  most of these organisations against whom action has been taken belong to the southern states of Andhra Pradesh, Kerala, Tamil Nadu, Maharashtra, and Karnataka, besides Jammu and Kashmir.
Andhra Pradesh tops the list, with 21 NGOs banned from taking foreign funding, followed by Karnataka with five, Gujarat with four, and Maharashtra with three, while two were from Rajasthan. The government has also referred nine cases to the CBI for investigation and prosecution under the Foreign Contribution (Regulation) Act, 1976 (FCRA).

The flow of funds saw a sharp rise during 2006-07 when Rs11,336 crore was received by 18,996 NGOs. There was a dip in 2007-08 when 18,796 NGOs got Rs9,663 crore.

The maximum funds went to NGOs in Tamil Nadu (Rs5,397 crore), followed by Delhi (Rs4,055 crore) Maharashtra (Rs2,744 crore), Karnataka (Rs2,588 crore), and Gujarat (Rs1,070 crore). NGOs in Rajasthan received Rs318.59 crore.

The FCRA’s prime objective is to regulate the acceptance and utilisation of foreign contribution and foreign hospitality by persons and associations working in key areas of national life. The FCRA was recently amended by the parliament to track in-flow of foreign funds.