NEW DELHI: The govt is set to introduce a bill in Parliament this week to amend the Foreign Contribution Regulation Act (FCRA), a move aimed at streamlining takeover of foreign-funded assets when an organisation’s registration is cancelled, surrendered or lapses.The bill proposes that foreign contributions and assets created by such organisations, including those partly funded by others, will be taken over by a designated authority which will safeguard and oversee these assets. It says these assets may be used for public purposes or transferred to “any ministry, dept, authority or agency” of the Centre or state govts or to local authorities. The authority, to be notified by govt, can take over assets of such entities that no longer have valid registration, the bill proposes. It also proposes that designated authority can “dispose of such assets through sale or any other appropriate process, in such manner as may be prescribed and credit sale proceeds together with any unutilised foreign contribution to the Consolidated Fund of India”.As per the bill, a new section (Section 14B) will be added to provide for cessation of FCRA registration upon “expiry of validity of certificate, non-renewal of certificate before its expiry, and where no renewal is applied for in prescribed form”. The bill also proposes to lay down a specific timeline for utilising the foreign contribution received under prior permission. It seeks to introduce another sub-section in Section 13, “requiring an organisation whose certificate is suspended not to alienate, encumber or otherwise deal with any asset created out of the foreign contribution, except with approval of central govt”.In another important amendment, the jail term for one accepting, utilising or assisting any person political party or organisation in accepting or utilising foreign contribution or currency from a foreign source in violation of FCRA provisions, is proposed to be reduced from five years to one year.
