As many of the readers of these posts would be aware that new Rule 24 alongwith Form FC10 of FCRA provisions, has made it mandatory for all registered organizations to obtain permission of the FCRA department before transferring funds to other registered organizations. This caused genuine concern and anxiety.
The matter was immediately taken up by Socio Research & Reform Foundation (SRRF) with Shri GVV Sarma, Joint Secretary, incharge of the Department alongwith representatives of a few of such organizations. They explained their problems particularly that most of them were having almost 100 or more partners and many of them transfer these funds on a regular basis (even monthly) to other registered NGOs.
Shri Sarma heard the delegation patiently and stated in clear terms that the intention of the Act is not to cause any unnecessary inconvenience. He understood the problem and suggested that such organizations could give the details through a letter indicating the organizations and amounts to be transferred even for a whole year. He indicated that the department was already in the process of developing a suitable system for online application for the same. However the organizations further explained that if the permissions were not given within a time bound manner, than the funds down the line for various activities would dry up and would hamper the development activities of various NGOs. It was also pointed out that the Rule is inconsistent with Section 7 of the FCRA Act 2010.
SRRF also submitted a written representation offering several alternative solutions. (See attached letter submitted to the Dept.)
The Joint secretary promised to immediately look into the issue to find solution and if required the dept. would issue necessary clarification through its web-site.
SRRF and all the representatives of donor agencies thanked Mr Sarma, the Joint secretary for his promptness in meeting the delegation.
Socio Research Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044