FCRA Dept has started issuing show-cause notices to registered entities, which have not received FCRA funds in last three years (FY 2021-22 to 2023-24). A sample copy of the Notice issued can be seen here. The Show cause Notice is being issued under S.14(1)(e) of the FCRA 2010 Act. The section is reproduced below:
S.14(1)(e): The Central Govt may, if it is satisfied after making such inquiry as it may deem fit, by an order, cancel the certificate, if the holder of the certificate has not been engaged in any reasonable activity in its chosen field for the benefit of the society for two consecutive years or has become defunct.
If you have rec’d such a Notice, and you wish to continue with your FCRA registration, you will need to write to the FCRA Dept within 21 days from the date of Notice and convince the Dept that you wish to continue with the activities, and are in negotiation / making efforts to receive FCRA donations in near future.If possible, provide some documentary support for the same.
However, ultimately it will be the decision of the FCRA Dept whether it cancels the Notice or accepts your representation.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
Dear Sir,
I have also received a show cause notice for one of organisation but after replying we have not received any response from them.
That is good news, check if the entity continues to be registered from FCRA website. If yes, make some effort to receive some FCRA funds in the meantime.
Hello everyone,
My NGO’s FCRA registration was recently cancelled under Section 14(1)(e) on the ground that we did not utilise foreign contribution for three consecutive years.
However, during this period we were actively working in health, nutrition and tribal development using domestic funds, as foreign donors withdrew and COVID disrupted funding. We had replied to the Show Cause Notice with activity proof, but the registration was still cancelled.
I would like to know:
Has any NGO in India successfully got FCRA restored after cancellation for non-utilisation / alleged inactivity?
Was it restored through representation to MHA or by High Court order?
What approach or arguments worked in such cases?
Looking for real experiences or case references.
Any guidance would be appreciated. Thank you.
Sorry to know about cancellation of your FCRA registration under S.14(1)(e).
The Section states that ‘The Central Govt may, if it is satisfied after making such enquiry as it may deem fit, by an order, cancel the certificate if the holder of the certificate has not been engaged in any reasonable activity in its chosen field for the benefit of the society for two consecutive years or has become defunct.
The above provision is clear that in case an organisation is not engaged in any reasonable activity for two consecutive years or has become defunct, only then FCRA Dept may cancel the registration, after making necessary enquiry. From the rading of the section, it is clear that the Dept must conduct an enquiry to establish if the organisation is defunct or not active at least 2 years. In your case, it is clear that your organisation is active. However FCRA Dept has still cancelled the registration.
What choices you have,
1. You can go for Revision under S.32 against the FCRA order.
or
2. In case you consider that may not be very effective you can file a writ appeal against the FCRA order cancelling your FCRA in the High Court.
I would recommend the second option, major grounds for appeal could be
(i) Entity is active and cannot be considered as either not undertaking activity in its chosen field or as defunct. (matter of fact)
(ii) FCRA funding is an additional option for raising funds. If an entity continues to remain active otherwise, it should be allowed to raise funds under FCRA too.
Hope the above helps. Wishing you all the best.
Thank you sir, thanks for reply
Is it happens in peevious years for any NGO, and whats the result after submission of request for continuation of FCRA, shall any one of the NGOs lost their registration even they answer for showcause notice. Please respond
There has been many instances when FC Registration has been restored on court order.
I am also currently dealing with such a case in Delhi High Court.
The sufferer may contact to me in case they need a counsel.
T thank you sir thank you for your reply shall I have your number, would like to contact you directly