• The Ministry of Home Affairs has cancelled the Foreign Contribution (Regulation) Act (FCRA) license of Rajiv Gandhi Foundation (RGF) and Rajiv Gandhi Charitable Trust (RGCT), organizations that are associated with the Nehru-Gandhi family, for alleged violations of the provisions of the Act.

What is FCRA- Foreign Contribution (Regulation) Act?

  • The law seeks to regulate foreign donations to individuals and associations so that they function “in a manner consistent with the values of a sovereign democratic republic”.
  • The law was enacted during the Emergency in 1976 amid apprehension that foreign powers were interfering in India’s affairs by pumping in funds through independent organisations. 
What are the regulations required after amendment in 2020?
  • It bars public servants from receiving foreign contributions.
  • The foreign contribution must be received only in an account designated by the bank as FCRA account in such branches of the State Bank of India, New Delhi.
  • No funds other than the foreign contribution should be received or deposited in this account.
  • It allowed the government to restrict usage of unutilized foreign contribution.
Can Individuals receive money?
  • Foreign funding in India is regulated under FCRA act. Individuals are permitted to accept foreign contributions without permission of MHA.
  • However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
Prohibitions under the act:

There are some provisions with respect to the foreign funds received, they must not be utilized by –

  1. candidates for elections.
  2. journalists or newspaper and media broadcast companies.
  3. judges and government servants, members of legislature and political parties or their office-bearers, and organisations of a political nature.

       Source: The Hindu