MHA Cancels FCRA License of Sonam Wangchuk’s Organisation

The Union Ministry of Home Affairs (MHA) on Thursday cancelled the FCRA license of climate activist Sonam Wangchuk’s organisation, a day after four people were killed in police firing during violent protests in Leh demanding statehood for Ladakh. The MHA alleged that the protests were “incited” by Wangchuk’s “provocative statements”.

What is FCRA?

The Foreign Contribution (Regulation) Act (FCRA) was first enacted in 1976 amid fears of foreign powers influencing Indian affairs by funding independent organisations. It regulates foreign donations to individuals and associations so that they function in a manner consistent with India’s sovereign democratic values.

The law has since been amended in 2019 and 2020 to tighten compliance and monitoring.

Key Provisions

• Any NGO or individual seeking to receive foreign contributions must be registered under the Act.
• A bank account in SBI, Delhi must be opened exclusively for foreign funds.
• Funds must be used only for the stated purpose and cannot be transferred to another NGO.
• Annual returns must be filed on utilisation of funds.

Recent Rule Changes

In July 2022, the MHA issued two gazette notifications amending FCRA rules:

• Increased compoundable offences under the Act from 7 to 12.
• Raised the exemption limit for foreign contributions from relatives abroad from ₹1 lakh to ₹10 lakh.
• Extended the time for intimating government about opening of new bank accounts.
• Barred categories like political parties, election candidates, judges, government servants, journalists and media houses are exempted from prosecution if foreign contributions are received from relatives abroad and not reported within 90 days.

Validity and Cancellation

FCRA registration, once granted, is valid for five years, and NGOs must apply for renewal six months before expiry. The MHA can cancel registration if an NGO is found in violation of the Act.