Missionaries of Charity and FCRA Row: history so far
Despite the government failing to freeze Missionaries of Charity (MoC) bank accounts, their FCRA registration issues are expected to create a major disruption to their philanthropic operations across India. Experts working on such issues have said that the central government’s reluctance to renew its FCRA registration will take at least a year to remedy, and even then it may not be effective.
Now what is it all about? The whole line concerns the organization that Mother Teresa founded in 1950 in the country.
What is it about?
The Home Office explained that the Commerce Ministry’s FCRA certification renewal application was denied on December 25, 2021 because they “did not meet the eligibility standards under the 2010 FCRA and regulatory rules. of foreign contributions (FCRR) 2011 “.
The Foreign Contribution Regulation Act (FCRA) was enacted in 1976 to control the flow of money from abroad to the country. The old law was repealed in 2010, and a new FCRA was enacted in its place.
Election candidates, newspaper editors or publishers, judges, civil servants, deputies and state legislatures, and even political parties, are all prohibited from accepting foreign contributions, including donations in cash or any other gift, under any circumstances under the FCRA. With prior authorization and registration with the government, charities can accept foreign donations.
The actual reason the MHA refused to renew the MoC’s request to renew its FCRA registration is unknown at this time. The motive for doing so, on the other hand, will be crucial to what happens next. If the cause is truly “audit anomalies”, the problem is not insurmountable.
A 2020 amendment that could have resulted in an audit irregularity is that now every organization registered by the FCRA must have a specific FCRA account to receive funds at a branch of the State Bank of India in Delhi; foreign funds cannot be received in any other bank account, even if notified to the government.