Foreign funding rules tighten for NGOs engaged in news publications

(Photo: Unsplash/Alexander Grey)

The Indian Ministry of Home Affairs (MHA) has introduced stricter regulations under the Foreign Contribution (Regulation) Act (FCRA) of 2010, significantly impacting non-governmental organisations (NGOs) involved in publishing activities. Under the new guidelines, NGOs seeking registration, prior permission, or renewal under the FCRA must now provide comprehensive details about individuals and affiliated organisations, including the nature of their association. A critical provision in the updated norms specifically affects NGOs involved in publications by prohibiting them from engaging in news-related activities.

This move aims to increase transparency and ensure that foreign contributions are not misused for influencing news media. These stricter regulations are part of broader efforts to ensure greater scrutiny and accountability of organisations receiving foreign funding.

The updated guidelines also specify additional grounds for licence cancellation, including concealment of facts in application forms, pending prosecutions against office-bearers, and failure to conduct “reasonable activity” for two to three years. For renewal applications, the MHA can reject cases where funds weren’t utilised according to stated objectives, annual returns weren't uploaded, or financial documents show discrepancies.

The government's oversight of NGOs has intensified since 2020 when the FCRA underwent significant amendments. These changes prohibited public servants from receiving foreign funding, made Aadhaar mandatory for NGO office-bearers, and reduced the cap on administrative expenses from 50% to 20% of foreign funds.

Between 2019 and 2022, the FCRA unit conducted inspections or audits of at least 335 NGOs to ensure compliance with foreign funding rules. High-profile cancellations during this period included the Rajiv Gandhi Foundation and Rajiv Gandhi Charitable Trust in 2022.

The ministry's crackdown has particularly affected church-based organisations. Earlier this year it was reported that five NGOs, including the Church of North India-Synodical Board of Social Service, Voluntary Health Association of India, Indo-Global Social Service Society, Church Auxiliary for Social Action, and Evangelical Fellowship of India, lost their FCRA certification.

Former IAS officer and rights activist Harsh Mander criticised the new guidelines, stating, “The state looks at organised civil society as its principal adversary. The judiciary, media, parliament [and] opposition have all been substantially weakened in their capacity to resist the ideological project of the RSS [Rashtriya Swayamsevak Sangh]-BJP in its unconstitutional move to the right.”

These developments underscore the increasing challenges faced by NGOs in India, particularly those involved in publishing and media-related activities, as they navigate the evolving regulatory landscape.