MHA allows NGOs with expired FCRA registration to pay compounding fee

The Ministry of Home Affairs on Wednesday allowed NGOs whose FCRA registration validity has expired to pay compounding penalty and fees from the FCRA bank account held with the SBI through the FCRA online portal.

In a public notice, the Ministry of Home Affairs (MHA) said it administers the Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010) and rules made thereunder, which regulate the receipt of foreign contributions by NGOs, voluntary organisations and associations, and their utilisation for bonafide activities as per law.

According to Rule 12(5) of the Foreign Contribution (Regulation) Rules, 2011 (FCRR, 2011), no person whose certificate of registration has ceased to exist shall either receive or utilise foreign contributions until the certificate is renewed.

Accordingly, NGOs and associations whose registrations ceased after the expiry of the validity period were not able to make the payment of compounding penalty and fees from the FCRA bank account.

"In view of the above, this ministry, in exercise of the powers conferred under Section 50 of the FCRA, 2010, has now allowed association(s) whose FCRA registration validity has expired to pay the compounding penalty and fees from the FCRA bank account held with the State Bank of India, New Delhi main branch, through the FCRA online portal by introducing 'SBI Branch Payment'," the MHA said.

However, any other receipt and utilisation from the FCRA bank account during this period would amount to the violation of FCRA, 2010, and be liable for penal action, the ministry said.