Govt Suspends Think Tank CPR's FCRA License: What Does This Mean? What Now?

The Centre For Policy Research (CPR) will no longer be able to receive any funds from abroad.

Centre for policy research. (CPR)

(Photo: Facebook/CPR)

The Ministry of Home Affairs has suspended the Foreign Contribution (Regulation) Act (FCRA) licence of prominent public think-tank Centre for Policy Research (CPR) for violation of laws, officials told news agency PTI.

In September last year, the organisation had come under the I-T Department's scanner when it had conducted 'surveys' there along with Oxfam India and he Independent and Public-Spirited Media Foundation (IPSMF).

What is FCRA? The Foreign Contribution Regulation Act (FCRA) was originally enacted in 1976 to regulate the inflow of money from abroad into the country. In 2010, the old law was repealed and a new FCRA was enacted.

Under the FCRA, there are certain categories of persons who cannot receive foreign contributions (including cash donations and even gifts of a certain value) under any circumstances: election candidates, the editors or publisher of newspapers, judges, public servants, members of Parliament and state legislatures, and even political parties.

However, in 2017, a retrospective exemption was created for donations received by political parties through Indian subsidiaries of foreign companies (which were supposed to be prohibited as well). This protected the BJP and Congress from falling foul of the law because of the donations they had received from Vedanta.

Organisations which do charitable work can receive foreign contributions if they register with the government or obtain prior permission for receipt of foreign funds.

So, what does CPR's FCRA Suspension mean? With the suspension of its licence, CPR will not be able to receive any funds from abroad.

CPR's Funding: According to CPR's website, it has been recognised as a not-for-profit society by the Government of India, and contributions to the think tank are tax-exempt.

It further stated that the organisation receives grants from the Indian Council for Social Science Research (ICSSR) and is a Department of Science and Technology (DST) recognised institution. CPR is a member institution of the Think Tank Initiative (TTI), a programme of the International Development Research Centre (IDRC).

CPR receives grants from a variety of domestic and international sources, including foundations, corporate philanthropy, governments, and multilateral agencies, the website added.

Previously This Has Happened With... Nearly 6,000 NGOs lost their FCRA licenses in January last year. These included Jamia Milia Isamia, Oxfam India, and even Indian Medical Association (IMA).

Before this, prominent organisations to have lost their licenses were the Leprosy Mission, the Tuberculosis Association Of India, the Indira Gandhi National Centre For Arts, and the India Islamic Cultural Centre. Greenpeace India.

(With inputs from PTI)