In a move that is likely to draw scrutiny, the Union Ministry of Home Affairs has granted Foreign Contribution (Regulation) Act (FCRA) registration to Maharashtra’s Chief Minister’s Relief Fund (CMRF), allowing it to receive foreign donations for social welfare activities.
The decision comes amid growing concerns over the government’s aggressive stance in revoking or stalling FCRA licenses of thousands of non-profit organisations over the past decade.
According to a report by The Hindu, this marks the first time a state government’s relief fund has been directly granted FCRA registration.
The CMRF, administered by Maharashtra Chief Minister Devendra Fadnavis and registered under the Bombay Public Trusts Act, 1950, has until now depended solely on domestic donations to support victims of natural disasters, communal violence, terrorist attacks, and those in need of medical or educational assistance.
The move by the ministry, led by Home Minister Amit Shah, contrasts sharply with its track record of restricting foreign contributions to several prominent NGOs and civil society organisations.
Critics have pointed out the inconsistency, particularly given the ministry’s earlier refusal to allow foreign aid for Kerala’s flood relief efforts in 2018.
The CMRF’s FCRA registration comes after a similar but separate decision in 2020 allowed the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund to receive foreign donations. Unlike PM CARES, which was exempted from FCRA provisions through a special notification, the CMRF has been formally registered under the Act.
The ministry regulates foreign donations to organisations engaged in educational, social, religious, and cultural work under the FCRA to ensure such funding does not undermine national security.
The law, originally enacted in 1976 and revamped in 2010, was further tightened in 2020. These amendments have been accompanied by a surge in FCRA license cancellations—over 20,000 between 2012 and early 2024, including more than 10,000 in 2015 alone.
As of May 31, 2024, there are 16,141 FCRA-registered entities in India. Tamil Nadu leads in cancellations with over 2,500, while Uttar Pradesh saw the highest proportion of cancellations relative to the total number of FCRA-registered NGOs in the state.
The CMRF reportedly handles between one lakh and 1.5 lakh transactions annually, as per a government tender floated in February this year. The ministry’s decision to grant it FCRA clearance has renewed debate over the application of the law and allegations of selective enforcement.
The decision comes amid growing concerns over the government’s aggressive stance in revoking or stalling FCRA licenses of thousands of non-profit organisations over the past decade.
According to a report by The Hindu, this marks the first time a state government’s relief fund has been directly granted FCRA registration.
The CMRF, administered by Maharashtra Chief Minister Devendra Fadnavis and registered under the Bombay Public Trusts Act, 1950, has until now depended solely on domestic donations to support victims of natural disasters, communal violence, terrorist attacks, and those in need of medical or educational assistance.
The move by the ministry, led by Home Minister Amit Shah, contrasts sharply with its track record of restricting foreign contributions to several prominent NGOs and civil society organisations.
Critics have pointed out the inconsistency, particularly given the ministry’s earlier refusal to allow foreign aid for Kerala’s flood relief efforts in 2018.
The CMRF’s FCRA registration comes after a similar but separate decision in 2020 allowed the Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund to receive foreign donations. Unlike PM CARES, which was exempted from FCRA provisions through a special notification, the CMRF has been formally registered under the Act.
The ministry regulates foreign donations to organisations engaged in educational, social, religious, and cultural work under the FCRA to ensure such funding does not undermine national security.
The law, originally enacted in 1976 and revamped in 2010, was further tightened in 2020. These amendments have been accompanied by a surge in FCRA license cancellations—over 20,000 between 2012 and early 2024, including more than 10,000 in 2015 alone.
As of May 31, 2024, there are 16,141 FCRA-registered entities in India. Tamil Nadu leads in cancellations with over 2,500, while Uttar Pradesh saw the highest proportion of cancellations relative to the total number of FCRA-registered NGOs in the state.
The CMRF reportedly handles between one lakh and 1.5 lakh transactions annually, as per a government tender floated in February this year. The ministry’s decision to grant it FCRA clearance has renewed debate over the application of the law and allegations of selective enforcement.
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