1,000 NGOs blacklisted for misusing foreign grant: Govt

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Over 1,000 NGOs have been barred from receiving foreign aid after they were found “mis-utilising” such funds, Union minister Kiren Rijiju informed the Lok Sabha today.

He said, more than two thousand non-government organisations have been asked to validate their existing bank accounts designated for receiving funds from abroad.

All the voluntary organisations need to be registered under the Foreign Contribution (Regulation) (FCRA) Act to be eligible to receive financial aid from abroad.

According to the Act, all banks shall report any transaction in respect of receipt of utilisation of any foreign contribution by a person to the central government within 48 hours. Mr Rijiju said, the Ministry has already asked the NGOs receiving foreign funds to file annual returns, showing expenses and receipts of any such grant.

About NGO

A non-governmental organization (NGO) is a nonprofit organization that is independent of governments and international governmental organizations.

They are usually funded by donations but some avoid formal funding altogether and are run primarily by volunteers. NGOs are highly diverse groups of organizations engaged in a wide range of activities, and take different forms in different parts of the world.

Since the end of World War II, NGOs have had an increasing role in international development, particularly in the fields of humanitarian assistance and poverty alleviation.

Foreign Contribution (regulation) Act

It is a consolidating act whose scope is

To regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto

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