Govt Regulates Foreign Funded NGOs: What About Political Parties?

The government has suggested regulation of foreign funded NGOs. Will the same standards apply to political parties?

File image of security personnel trying to restrain a Greenpeace activist during a blockade of the Tata Group’s HQ in Mumbai. (Photo: Reuters)

The Home Ministry has issued a new declaration stating NGOs must make it clear that the foreign aid received by it will not be used for any activities “detrimental to national interest, likely to affect public interest, or likely to prejudicially affect the security, scientific, strategic or economic interest of the state.”

NGOs will also have to also submit details of any social media account — Facebook, Twitter, etc. — operated by them.

The draft of the proposed amendments to the Foreign Contribution Regulation Act (FCRA) rules also states that NGOs receiving foreign funds will have to put out details of it within one week on its website, while banks will have to submit a report about such donations to the government within 48 hours.

Stifling Freedom or Just Cumbersome?

Many NGOs do not oppose the rules in principle. However, they do feel that the rules can be cumbersome and will be difficult to follow.

To demand the furnishing of details of foreign exchange receipts and spending is asking for too much. Banks are likely to find it tedious to dispatch such details to the ministry on a daily basis.
— R Bhakther Solomon, Development Promotion Group

There are some activists, however, who are apprehensive not only about the execution of the rules, but also the the perceived intent behind these changes.

There is some concern over the fact that “national interest” and “public interest” have not been defined.

Activist Venkatesh Nayak, for example, told The Telegraph that the mention of “national interest” in the declaration and not the rules per se betrayed a “conspiratorial” attitude.

Those Who Live in Glass Houses...

Section 29(B) of the Peoples Representation Act, as well as the FCRA prohibits foreign donations to political parties. On March 28, 2014 the Delhi High Court found that both the Congress and the BJP had accepted foreign donations and directed the Ministry of Home Affairs and the Election Commission to take action against both parties within six months.

The judgement came in response to a PIL filed by the Association of Democratic Reforms (ADR) and EAS Sharma, Former Secretary, Government of India.

The High Court has already found both the Congress and the BJP guilty. The decision has been appealed in the Supreme Court. The hearing begins on July 7.
– Lakshmi Sriram, ADR 

The influence of foreign money on Indian politics can indeed be a worrying sign. However, what remains to be seen is how the government will react if the apex court holds up the ruling that implicates the ruling party as well as the principal opposition for the same offense.