Search the Internet          Tips  Sites: Finance, Investment

Government to amend foreign funds Act

Liz Mathew in New Delhi

The Indian government is likely to amend a foreign contribution law to check the flow of foreign funds for 'insurgent activities'.

The law ministry has already distributed a note on the draft amendment bill among Cabinet ministers.

Sources said that the bill to amend the Foreign Contribution Regulation Act of 1976 would be presented during the ongoing monsoon session of Parliament.

The Bharatiya Janata Party-led government's move to make drastic changes in the FCRA to check the flow of foreign money to religious organisations has already come in for criticism. It was viewed as a bid to curb the activities of missionaries and control the flow of money from the Gulf countries for Muslim organisations.

Sources in the law ministry said the new bill would specially target three categories: the foreign funds received by 'madrasas' (Muslim seminaries), funds for Christian missionaries working among tribespersons and funds for Buddhist organisations.

The home ministry says some funds received by madrasas from abroad have been used for 'insurgent activities' and to help terrorism.

According to sources in the ministry, some madrasas and Islamic organisations in India received Rs 4 billion in the year 1999 alone -- Rs 3.16 million from the US, Rs 6.14 million from Canada, Rs 16.36 million from Britain and more than Rs 2 billion from Gulf countries like Kuwait and Saudi Arabia.

Most of these funds have gone to organisations based in the country's southern region.

The government feels that Christian missionaries, especially in the tribal areas and the northeast, survive on foreign assistance. The hardliners in the government say as long as missionaries have money, it would be difficult for the Sangh Parivar, -- the fraternity of Hindu groups affiliated to the BJP -- to make inroads into the region.

Official records indicate that there are 1,168 foreign missionaries working in different parts of the country. Most of them are from the United States (1,580), Italy (158), Slovenia (155) and Ireland (106).

Government sources also say neo-rich countries in Asia do not hesitate to fund the spread of the Buddhist faith. "The government feels that there should be control over any kind of funds for religious affairs," said an official in the law ministry.

Under the amendments proposed to the FCRA, the process of registration of religious organisations receiving foreign funds would be made stricter. The organisations would be required to register with the home ministry and submit their annual financial reports to it.

When they apply for registration, there would be strict scrutiny of their activities. If found to be indulging in any financial irregularities, the organizations would be liable to severe punishment under the amended Act.

The current act was introduced during the Emergency rule in the 1970s to block the sources of finance for non-governmental social organisations.

An earlier move by the BJP government in Gujarat and the Central government to investigate the sources of funding of Christian organisations had sparked a controversy. Both governments had to stop midway following protests from other political parties in Parliament.

The government has already amended certain provisions in the FCRA and stipulated that all organisations receiving funds from foreign agencies should get an affidavit from the district administrator explaining the nature of their activities.

Indo-Asian News Service

Money

Business News

Tell us what you think of this report