Uncertain times for status of FCRA Renewal ‎

These are uncertain times for most NPOs registered under FCRA. Last time most NPOs FCRA was renewed on 31^st Oct 2016 or a date close to it, hence as per rules, FCRA was to expire five years later on or around 31^st Oct 2021. Dept realizing that it would not be able to renew in most cases, extended the validity of FCRA certificates upto Dec’ end.

Now many are again feeling apprehensive, as very few FCRA renewals are trickling in. And considering the process that FCRA Dept follows, it will be quite difficult for the Dept to issue all organizations FCRA renewal by Dec-end. What can NGOs do – well uncertainty, particularly due to FCRA, has become part of life for most NPOs, and they have got used to it.

Looking at the past precedent, it is quite possible that the Govt may again extend the validity of FCRA registration – a most likely outcome. Some of the questions being raised.

Can NGO use FCRA funds lying with it as at 31-12-2021, after this date ?

• If FCRA date is extended, yes Funds can be used.
• If FCRA date is not extended and no rejection letter rec’d, that means FCRA though expired, however since FCRA Renewal application has been made and not rejected, FCRA funds can be used in normal course. This was the precedent even at the time of 2016 renewal, when the Dept allowed people using FCRA fund, after the FCRA expired and was awaiting renewal. Though you may face problem if banker does not allow you to withdraw funds. Then only recourse open will be to go to FCRA Dept with a suitable application.
• If FCRA date is not extended, and Renewal application not filed before expiry date. Then the NGO is in big soup, as it would mean FCRA deemed to have ceased (rule 12(6)), which means all funds and assets lying with the NGO get vested with the Govt. In such cases the NGO can neither receive nor utilize FCRA funds.

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Socio Research & Reform Foundation (NPO)                       
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008