MHA Grants FCRA Licenses to CNI and USIN Foundation

The Union Ministry of Home Affairs (MHA) has granted FCRA licenses to the USIN Foundation, a think tank, and The Synodical Board of Social Services of the Church of North India (CNI), reinstating CNI’s license that was revoked last year. This approval allows CNI to resume receiving foreign funds for social and religious activities. The decision comes as the MHA continues its scrutiny of NGOs, with recent revocations signaling increasing regulatory oversight.

Recent FCRA License Revocations

In a contrasting move, the MHA revoked the FCRA licenses of five prominent NGOs on allegations of misusing foreign funds, including CNI-SBSS, Voluntary Health Association of India (VHAI), Indo-Global Social Service Society (IGSSS), Church Auxiliary for Social Action (CASA), and Evangelical Fellowship of India (EFOI). CNI-SBSS, established in 1970, was the arm of the Church of North India for rural development, but faced allegations of financial mismanagement. Similarly, VHAI, which had long been active in disaster relief, and CASA, with foreign grants from countries like Germany and the US, have been impacted by the MHA’s decision.

Key Allegations and Past Actions

The MHA’s focus on NGOs with foreign funding has intensified in recent years. Over 100 NGOs, including notable names like the Centre for Policy Research (CPR), Rajiv Gandhi Foundation, and Oxfam India, have lost their FCRA licenses due to misuse of foreign contributions. These actions reflect ongoing concerns about compliance with FCRA regulations and the proper use of foreign funds for charitable and developmental activities in India.

MHA’s Expiring FCRA Licenses and Renewal Process

Alongside the revocations, the MHA has extended the validity of FCRA licenses expiring between April 1 and June 30, 2024, until June 30, 2024, for NGOs to apply for renewal. This move aligns with the broader effort to streamline foreign fund regulation, with a focus on compliance and transparency in foreign contributions.

Summary of the news

Why in News	Key Points
FCRA Licence Grant to USIN Foundation and CNI	– MHA grants FCRA licenses to USIN Foundation and CNI Synodical Board of Social Services. – CNI’s license, revoked last year, reinstated. – USIN Foundation granted FCRA license earlier this month. – FCRA regulates foreign funds for NGOs.
Revocation of FCRA Licenses	– MHA revoked FCRA licenses of five NGOs: EFOI, CASA, VHAI, IGSSS, CNI-SBSS. – Reason: Violations of FCRA rules and foreign fund misuse. – CNI-SBSS linked to Church of North India (CNI) for rural development.
Notable NGOs Affected	– VHAI: Worked with WHO and ICMR, received foreign funds. – CASA: Received donations from Germany, USA, Sweden. – IGSSS: Focused on climate resilience, received funds from UK, Germany, Singapore.
Other FCRA Actions	– Over 100 NGOs, including CPR, Rajiv Gandhi Foundation, Oxfam India, lost FCRA licenses in recent years. – Oxfam India’s license revoked in Dec 2021.
MHA’s FCRA License Renewal Process	– MHA extended FCRA license validity for NGOs expiring between April 1 and June 30, 2024, till June 30, 2024. – NGOs to apply for renewal before expiry.