The Union Home Ministry has recommended an investigation by the Central Bureau of Investigation (CBI) into the alleged violation of FCRA provisions by Oxfam India, one of the largest NGOs working on food, shelter, and education of vulnerable groups. The Foreign Contribution (Regulation) Act (FCRA) registration of Oxfam India that enabled it to receive foreign funds was not renewed by the Ministry in 2021.
About Oxfam India
Oxfam is a British-founded confederation of 21 independent charitable organizations focusing on the alleviation of global poverty, founded in 1942 and led by Oxfam International. Oxfam India is an autonomous Indian organization and has staff and board members from within India. The government of India has registered Oxfam India as a non-profit organization under Section 8 of the Indian Companies Act, 2013. Oxfam India started working on the ground in six poorest states of India: Uttar Pradesh, Jharkhand, Bihar, Chhattisgarh, Assam, and Odisha. Oxfam India is a member of the global confederation of 21 Oxfams across the world.
About FCRA
The FCRA was enacted during the Emergency, with the aim of curbing foreign entities from pumping money into organizations in India for achieving their own aims. The FCRA requires every person or NGO seeking to receive foreign donations to be registered under the Act, to open a bank account for the receipt of the foreign funds in State Bank of India, Delhi, and to utilize those funds only for the purpose for which they have been received and as stipulated in the Act. The Act prohibits the receipt of foreign funds by candidates except under some particular circumstances with requisite declarations.
Registration under FCRA
NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation. FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programs. Following the application, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant, and accordingly processes the application.
The MHA is required to approve or reject the application within 90 days — failing which it is expected to inform the NGO of the reasons for the same. Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of expiry of registration. In case of failure to apply for renewal, the registration is deemed to have expired.
Cancellation of approval
The government reserves the right to cancel the FCRA registration of any NGO if it finds it to be in violation of the Act. Once the registration of an NGO is canceled, it is not eligible for re-registration for three years. All orders of the government can be challenged in the High Court.
Investigation by CBI into Oxfam India
The recommendation by the Union Home Ministry for a CBI investigation into Oxfam India comes after the Ministry did not renew the FCRA registration of the NGO. The Ministry has alleged that Oxfam India violated FCRA provisions. The Ministry has not provided any details of the alleged violations.
Implications of the CBI investigation
The investigation by the CBI into Oxfam India could have significant implications for the NGO. If the CBI finds that Oxfam India has violated FCRA provisions, it could lead to the cancellation of the NGO’s FCRA registration. This would mean that Oxfam India would not be eligible to receive foreign funds for a period of three years.
Why In News
The Union Home Ministry’s recommendation of a CBI probe against Oxfam India for FCRA violations has put a spotlight on the NGO’s operations in India. The allegations have raised concerns about the functioning of non-profit organizations in India and the need for greater transparency and accountability in the sector.
MCQs about Overview of Oxfam’s Work in India
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What does FCRA stand for?
A. Foreign Contribution (Regulation) Act
B. Foreign Contribution (Registration) Act
C. Foreign Contributions (Restriction) Act
D. Foreign Contributions (Reporting) Act
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What is the aim of FCRA?
A. To promote foreign investment in India
B. To restrict foreign entities from funding organizations in India for their own benefits
C. To promote foreign entities to establish their companies in India
D. To encourage foreign individuals to donate to charitable organizations in India
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What action has the Union Home Ministry recommended against Oxfam India for FCRA violations?
A. Suspension of Oxfam India’s operations in India
B. A probe by the Central Bureau of Investigation (CBI)
C. A fine of INR 1 crore on Oxfam India
D. Renewal of Oxfam India’s FCRA registration
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