Parliament has given its stamp of approval to the Foreign Contribution (Regulation) Bill, 2010, already passed by the Rajya Sabha and adopted by the Lok Sabha on Friday.
The Bill seeks to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies. It will prohibit acceptance and utilisation of foreign contribution or foreign hospitality for activities detrimental to the national interest or national security.
Originally, the Bill was introduced in the Rajya Sabha in 2006, and referred to a standing committee, which made 14 recommendations in 2008, of which 12 were accepted. The Upper House accepted the Bill later.
Replying to the debate in the Lok Sabha, Minister of State for Home Ajay Maken said the Bill would prevent powers which want to use foreign funds to divide the country on religious basis. Those organisations, with fictitious or benami accounts, which had indulged in conversions directly or indirectly, created communal tension, supported sedition or had diverted funds earlier would be barred from receiving foreign contributions any more.
The Bill had sufficient provisions to ensure that genuine non-governmental organisations involved in developmental activities did not suffer.
Over 40,000 organisations in the country receive foreign contributions and of them, only 18,000, report the funds transfer and submit accounts. “The rest are dormant...the Bill will ensure that every five years the organisations renew their registration so that the dormant ones can be weeded out.”
There was a provision in the Bill where if any organisation received funds over Rs.10 lakh in an instance, the bank concerned would immediately inform the government so that government agencies would track the source of such funds, he said.
This law would prohibit certain individuals and organisations to accept overseas funds and they include cooperative societies, candidates during elections, correspondents, editors and publishers of newspapers, judges and government servants, members of legislature and political parties.
However, remittances received from relatives abroad and salaries or wages due from foreign sources and payment for international trade are exempted. If those receiving foreign contribution do not file accounts the government will have the power to cancel their registration.
Those organisations engaged in production or broadcast of audio news, audio-visual news or current affairs through any electronic mode will be brought under the purview of the legislation. Similarly, use of foreign contribution for any speculative business is prohibited.
