Infosys Foundation, Skoda Auto served show cause for 'failing' to file FCRA returns

The Infosys Foundation, Skoda Auto India, University of Rajasthan and Madras Christian College are among 1,775 entities which have been served show cause notice by the Home Ministry for their "failure" to submit annual income and expenditure statement on foreign funding for up to six years.

In its show cause notice, the home ministry said the the entities or associations have not submitted online their income and expenditure statement, receipts and payment account, balance sheet for up to six consecutive financial year -- 2011-12 to 2016-17-- despite repeated notices served on them.

The ministry warned that if the entities and organisations fail to submit the returns for the said period by December 1, 2018, "appropriate action" will be taken under the Foreign Contribution (Regulation) Act.

Besides, the Infosys Foundation, Skoda Auto India, University of Rajasthan, Madras Christian College, those entities and associations which were served with the show cause notice include the Shree Siddhivinayak Ganapati Temple Trust, Mumbai, Loyola College Society, Vijayawada, Guru Harkrishan Education Society, Chandigarh and Allahabad Agricultural Institute.

Others include the National Association for the Blind, Gujarat, Vivekananda Seva Sadan, West Bengal, Bombay Memons' Education Society, Rajiv Gandhi Social Service Centre, Madurai, Jawahar Sarvodya Vikas Samiti, Nalanda, Bihar, Indira Mahila Bikash Samiti, Orissa, Nehru Yuva Sankalp Sansthan, Rajasthan, Jain Vishva Bharati Institute, a deemed university located at Nagaur in Rajasthan.

Young Men's Christian Association, Kutch, Gujarat, Midas Trust, Mumbai, Mewat Educational and Development Society, Haryana, North East Institute of Fashion Technology, Guwahati and Jamia Islamia Ashraf Ul Ullom Arabic Education Public Charitable Trust, Visakhapatnam were also among those which were served the show cause notice.

The FCRA provides that associations registered under the Act shall submit electronically online annual report with scanned copies of income and expenditure statement, receipts and payment account, balance sheet etc. for every financial year within nine months of the closure of the financial year.

Such associations which do not receive foreign contribution during a particular year are also required to furnish a NIL return for that financial year within the aforesaid period.

The home ministry said after scrutiny of records for the years 2011-12 to 2016-17, it has been observed that the annual report/accounts for some of the financial years in the aforesaid period have not been found uploaded on the FCRA portal online by the said associations despite the fact that one final opportunity of one month was provided to all such associations to submit the missing annual reports without paying any penalty on May 12, 2017.

Another notice was served on April 24, 2018 to these associations advising them to submit annual report/accounts of the missing years electronically online immediately.

However, the said associations have failed to submit annual report/accounts of the missing year(s) electronically online till date despite notices, the ministry said.

"Therefore, the said associations are hereby directed to explain within a period of 15 days from the date of issue of this show cause notice as to why appropriate action under the FCRA may not be initiated against them," it said.