Stricter FCRA Compliance Leaves Only 27.7% of Registered NGOs with Active Licences

New Delhi, Jul 9 (KNN) Only 14,455 organisations, or 27.7 percent of all entities registered under the Foreign Contribution (Regulation) Act (FCRA), 2010, currently hold active licences to receive foreign funding, according to data from the Ministry of Home Affairs (MHA).

Less Than One-Third of FCRA Registrations Remain Active

Since the MHA began maintaining records of valid FCRA registrations in 2012, a total of 52,159 NGOs and associations have been granted licences. 

Of these, registrations of 22,498 organisations have been cancelled, while another 15,206 licences have been deemed expired after the organisations either failed to renew their registration or did not comply with revised regulatory requirements.

The tightening of FCRA norms in recent years introduced stricter provisions on financial transparency, utilisation of foreign contributions, administrative expenses and regulatory compliance, leading to a sharp rise in cancellations and non-renewals, reported Times of India.

Tamil Nadu Leads in Active FCRA Registrations

Tamil Nadu has the highest number of active FCRA-registered organisations at 2,104. The state also has 2,865 cancelled registrations and 1,774 deemed expired licences.

Maharashtra ranks second with 1,583 active organisations, while registrations of 2,211 entities have been cancelled and 1,646 licences have lapsed since 2012.

Several States See High Cancellation Rates

In terms of the proportion of organisations with cancelled or deemed expired registrations, Bihar recorded the highest share at 85.2 percent, followed by Uttar Pradesh (83.7 percent), Nagaland (83.3 percent), Tripura (80 percent), Maharashtra (78.9 percent), Manipur (78.6 percent) and West Bengal (78.2 percent).

The data also indicates that, except for one state, all northeastern states recorded cancellation or deemed expiry rates above the national average.

Under the FCRA framework, only organisations with active registration are permitted to receive foreign contributions for approved purposes in accordance with the Foreign Contribution (Regulation) Rules, 2011.

(KNN Bureau)