Changes to Foreign Contribution Act ‘cleared’ by Cabinet

New Delhi (TIP): A proposed legislation allowing the government to prescribe the validity period within which foreign contributions may be received and also the timelines for their usage, is learnt to have been cleared by the Union Cabinet. The amendments to the Foreign Contribution (Regulation) Act (FCRA), are said to have been approved by the Cabinet, under which detailed statutory directions for proper management and usage of foreign contributions of NGOs whose registration has been suspended or cancelled, have been underlined.
The existing law does not have any provisions for managing assets and foreign contributions of such NGOs, and therefore, the amendments are said to have been cleared which will underline a clear regulatory framework for them, sources said. The Bill also proposes to introduce a safeguard to ensure criminal probes under the Act are initiated only with the prior approval of the Centre, the sources said further.