Lok Sabha Passed the Bill on Foreign Funds
Lok Sabha gave its approval to the Foreign Contribution (Regulation) Bill, 2010 on 27 August 2010. The objective of the Foreign Contribution (Regulation) Bill is to regulate the way individuals or associations or companies accept and utilise foreign funds.
Lok Sabha gave its approval to the Foreign Contribution (Regulation) Bill, 2010 on 27 August 2010. The objective of the Foreign Contribution (Regulation) Bill is to regulate the way individuals or associations or companies accept and utilise foreign funds. The Foreign Contribution (Regulation) Bill prohibits any acceptance and utilisation of foreign funds which can harm the national interest or jeopardise the national security. The Bill would disallow those organisations which had been found to be indulged in creating communal tension-from receiving any foreign contributions or funds any more.
Foreign Contribution(Regulation) Bill2010, has a provision that if any organisation receives fund more than 10 lakhs then the bank (in which the fund is deposited) will immediately inform the government about this. The government will find out the source from which the money is funded.
Foreign Contribution(Regualtion) Bill prohibits organisations and individuals from receiving foreign funds includes members of legislatures and political parties, cooperative societies, candidates contesting elections, judges and government servants, correspondents, editors and publishers of newspapers.
The Bill will be also applicable to those organisations which are involved in production or broadcast of current affairs, audio news and audio visual news through any electronic means. Any foreign fund for tentative business is not allowed as per the provisions of the bill.
However, the bill has provisions to ensure that valid NGOs (Non Governmental organisations) engaged in development activities are not affected adversely. The bill exempts the funds received from relatives abroad and payment for international trade. If anybody getting foreign contribution does not file accounts, the government can exercise its power to cancel his or her registration.
According to the government estimates, approximately 40,000 organisations in the country receive foreign contributions and out of them only 18000 inform the government regarding the funds transfer. The Bill will make it obligatory on the organisations that every five years they renew their registration so that illegal foreign funds could not be transferred to India.
Foreign Contribution(Regulation) Bill was first introduced in the Rajya Sabha in 2006 and passed later by the Rajya Sabha.