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26th September 2025 (13 Topics)

FCRA Cancellation in Ladakh

Context:

The Union Home Ministry cancelled the FCRA registration of the Students Educational and Cultural Movement of Ladakh (SECMOL), founded by climate activist Sonam Wangchuk, citing violations of the Foreign Contribution (Regulation) Act (FCRA), 2010.

Foreign Contribution (Regulation) Act (FCRA)

Background and Purpose

  • Enactment: FCRA was enacted in 1976 during the Emergency period to regulate foreign donations to NGOs, associations, and individuals, aiming to prevent foreign interference in India’s internal affairs.
  • Objective: Ensure foreign contributions are used for legitimate purposes (social, cultural, educational, economic, religious) without compromising national sovereignty or democratic values.
  • Scope: Applies to all individuals and associations receiving foreign contributions, including NGOs, educational institutions, and religious organisations.

Key Provisions of the FCRA

  • Registration
  • Mandatory Requirement: Foreign contributions can be accepted only after obtaining FCRA registration.
  • Categories: NGOs can register for various categories such as cultural, educational, social, economic, and religious programmes.
  • Bank Account: Contributions must be received through a designated FCRA account in a specified branch of State Bank of India, New Delhi.
  • Prohibited Activities
    • No fictitious entity representation.
    • No involvement in religious conversion.
    • No history of communal tensions or sedition-related activities.
    • Political entities, judges, journalists, and government servants are prohibited from receiving foreign contributions.
  • Validity and Renewal
    • Validity: Five years.
    • Renewal: Required six months before expiry.
    • Cancellation: Can be revoked for violations or inactivity for two consecutive years; no re-registration allowed for three years.

Key Amendments

  • 2010 Amendment
    • Strengthened regulation and compliance.
    • Prohibited foreign contribution usage for activities detrimental to national interest.
  • 2020 Amendment
    • Ban on transfer of foreign funds to other individuals or organizations.
    • Reduced permissible foreign contribution usage for administrative expenses from 50% to 20%.
  • 2022 Rules Change
    • Increased compoundable offences from 7 to 12.
    • Raised limit for relative contributions abroad exempt from intimation from ?1 lakh to ?10 lakh.
    • Extended time limit for bank account intimation.
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