Centre may amend FCRA making Aadhaar compulsory to accept foreign contributions

The government has proposed amendments to the Foreign Contribution Regulation Act (FCRA) that will make Aadhaar as a compulsory identification document to accept foreign donations.

This amendment will also stop public servants and government-owned corporations from receiving foreign contributions.

According to a News 18 report, in section 3, sub section 1, clause (c), the government proposes to add public servants to the list of those excluded from receiving FCRA donations. Currently the list includes," judges, government servants or employee of any corporation or any other body controlled or owned by the government.” While a public servant has been defined as per section 21 of the Indian Penal Code (IPC). Corporation would include any entity owned or controlled by the government.

The new section 12A would make Aadhaar mandatory for those seeking foreign contributions.

The proposed section says, “Notwithstanding anything contained in this Act, the Central government may require that any person who seeks prior permission or prior approval under section 11, or makes an application for grant of certificate under section 12, or, as the case may be, for renewal of certificate under section 16, shall provide as identification document, the Aadhaar number of all its office bearers or Directors or other key functionaries, by whatever name called, issued under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, or a copy of the Passport or Overseas Citizen of India Card, in case of a foreigner.”

Additional restrictions have also been placed on non-governmental organisations (NGOs) under the proposed amendment. The proposed amendment to the Act says NGOs cannot use more than 20 percent of their foreign contributions towards meeting administrative expenses. Currently, the limit is 50 percent for paying salaries or meeting other administrative needs.

If passed, this amendment will prevent the transfer of foreign contribution from one association or person to another. The amended bill allows NGOs to receive foreign donation exclusively either in a designated FCRA account to be opened in a State Bank of India New Delhi branch or 'as the Centre shall specify by notification’.

According to the statement of objects and reasons of the Bill, there is need to streamline provisions of FCRA by strengthening the compliance mechanism, enhancing transparency and accountability in the receipt and utilisation of foreign contribution worth thousands of crores of rupees every year. There is also a need to facilitate genuine NGOs or associations who are working for the welfare of the society, it added.