NEW DELHI: The Central Government has introduced strict timelines for NGOs and associations receiving foreign funds under the Foreign Contribution Regulation Act (FCRA), 2010. According to a public notice issued by the Ministry of Home Affairs on Monday, organisations granted ‘prior permission’ to receive foreign contributions will now have a three-year window to receive the funds and a four-year deadline to utilise them.
“Any receipt or utilisation of foreign contribution beyond these limits will constitute a violation of the FCRA, 2010, and may attract punitive action,” the ministry warned.
However, the ministry also provided some flexibility. NGOs unable to comply within the specified timeframes due to genuine reasons may apply for an extension, which will be considered case-by-case, based on the merits of each situation.
Previously, the validity of prior permission was linked to the duration of the specific project or activity for which the funds were approved, and only from the originally designated funding source. A new prior permission was required if funds were sought for another project or from a different donor.
In the latest notification, the ministry clarified that under Section 46 of the FCRA, the new three-year validity for receiving foreign contributions will begin from the date of approval of the prior permission application.
For projects that have already been approved and whose duration exceeds three years, the timeline will now be calculated from the date of this order, not from the original approval date.
