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The Finance Minister, Shri P.Chidambaram has called upon NGOs to cooperate with the government in ensuring that foreign receipts are not diverted or misutilised. He was delivering the valedictory address at a seminar on the Foreign Contribution Regulation Act (FCRA), 1976 here today. He emphasized that accounting and reporting are essential ingredients of FCRA compliance and should not be construed as invasion or intrusion on the NGOs’ rights. He made it clear that the Government values the contribution of the civil society. While commending the initiative taken by the Ministry of Home Affairs and the Institute of Chartered Accountants of India in organizing the joint seminar, the Finance Minister dwelt upon various aspects of important financial legislations like FCRA and FEMA . He emphasized the need for greater awareness and compliance of the law. He said that although these enactments are designed to achieve different objectives, but all these are concerned with regulation of capital flow. In the present world scenario, flow of capital in private accounts has grown to hundreds of billions of dollars. Therefore, the law like FCRA becomes very important to ensure that such flow does not disturb the security of a country.
The basic purpose of the two-day seminar was to create awareness among various stakeholders including NGOs, bankers, chartered accountants, donors, etc. regarding the provisions of FCRA and to invite suggestions for improvement in the functioning of the FCRA wing of MHA as well as for the proposed new Act which will replace the existing Act.
The seminar, the first of its kind, was inaugurated by the Home Minister, Shri Shivraj Patil yesterday. Six technical sessions were conducted during the seminar for the benefit of participants. Delegates from all over the country from different cross sections like NGOs, banks, chartered accountants, major donors, lawyers, academicians, representatives of Embassies/High Commissions and officers from Central and State Governments participated in the Seminar. During the seminar, several issues pertaining to receipt and utilization of foreign contribution were deliberated upon. Items like allowing multiple bank accounts for utilization of foreign contribution, need to reduce delay in disposal of applications for grant of registration/prior permission under the Act, need to simplify the existing forms, on-line submission of application forms and returns , communicating the reasons for rejection of applications, etc. came up. On these issues, MHA will initiate necessary action within the existing legal framework.
Many suggestions regarding the proposed Act like provision for appeal, giving management outlook to the new Act, etc. and specific ideas for improvement in the functioning of the FCRA wing of MHA were received. The Home Minister and the Home Secretary assured that all these suggestions/views would be documented and duly considered by the Ministry for inclusion in the proposed Bill. During the seminar, it emerged that many associations were committing various lapses due to lack of adequate knowledge and familiarity with the provisions of the Act.
OK/AD/MM
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