FCRA Cancellation

Dear Friends,

Greetings from CWS, Hyderabad!

This is with reference to the cancellation of the FCRA registrations of approximately 4200 NGOs across India. I am trying to seek certain clarification from all of you:

  1. MoHA has not frozen the bank accounts of all the NPOs whose registrations have been cancelled. I am at loss to understand the logic and interpretation behind this move. Does this in any way mean that the existing funds in the account can be used? Or What else could be the reason behind this  move?
  2. Representations have been sent by the aggrieved NPOs and to my knowledge there is a news that MoHA is sending communication to some of these NGOs wherein it is allowing them to use the funds of the ongoing projects. NPOs cannot apply for new projects.
  3. Should the current action of MoHA be treated as cancellation or suspension of registrations?

I would request your feedback on the same.

Thanks and regards,

B V Soma Sastry

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2 Responses to FCRA Cancellation

  1. Subhash Mittal says:

    Dear Friends,

    I had a fruitful meeting at the FCRA Dept, day before yesterday.

    Latest status on cancelled FCRA Registration is as follows. All those who have submitted Representations to the Dept. are being issued a letter on following lines:

    1. FCRA registration stays cancelled,
    2. However these organisations will be allowed to use the funds towards genuine expenses as long as all the payments are made by cheques. No cash payments allowed. Funds can be used for a maximum of 6 months.
    3. In the meantime the Dept. would take a detailed scrutiny of the organisation’s records to ensure that the objections that have been raised in their internal scrutiny are not valid.

    Soma Sastry has raised a question whether present cancellation is really ‘cancellation’ or ‘suspension’. Dept is treating it as cancellation, however it is allowing utilisation of funds pending scrutiny.

    Dept has received representations only from around 100 organisations, so in case yours is an affected organisation, and you have not filed, please do file a representation even if you have violated, so at least the Dept can take a decision based on your petition, otherwise your FCRA would be treated as cancelled.

    Hope above information is useful.

    warm rgds

    subhash mittal

  2. c udayashankar says:

    Dear Friends,
    “Cancelled” means that a particular facility, in this case-FCRA registration / certificate, can never be used. One may seek a new certificate / prior permission. Not that Soma Sastryji does not know this! MOHA may have strange definitions of even common words.
    If the Bank account is not frozen, best thing is not to seek clarification but to simply use the remaining balance for purposes funds were meant.
    One can get the benefit of remittances till the time Bank/NGO receives official communication from MOHA. Is it not!

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