Dear Friends,
Is FCRA needed for “Gram Panchayaths” to get foreign funds?
As a corollary is FCRA needed for any local body to receive foreign funds?
Can Gram Panchayath and local bodies spend these and other funds they may raise from other than tax revenue with freedom we in Voluntary sector have, of course subject to government audit? Or do they need the consent of Government Officer?
Regards,
V.B.Chandrasekaran,
Chatti Mahatma Gandhi Aashramam,
Chatti Post, Chinthur Mandal, East Godavari District,
Andhra Pradesh, Pin Code: 507129.
Chatti Post, Chinthur Mandal, East Godavari District,
Andhra Pradesh, Pin Code: 507129.
Freinds, I have a slightly different view. While Panchayats are covered by the definition of legislature vide S.2(k)(G). However S.3 (d) of FCRA 2010 Act basically prohibits acceptance of foreign contribution by any member of any legislature. It does not prohibit the legislature itself. The logic being that members could be influenced to vote for policies in the legislature which may be detrimental to the interests of the nation.
Infact one of the circulars of the FCRA Dept. exempts any legal body which has been constituted vide a legislation and is subject to CAG audit, is exempt from FCRA Act. Thus one could say that Panchayat bodies are exempt from FCRA Act and can receive foreign funds, provided these are subject to CAG audits. I could further provide an anology that panchayat body which undertakes expenditure is like a state Dept / Central ministry spending the funds but are different from state assembly / parliament. Thus the administrative section of the panchayat body could receive foreign funds but not the individual meembers.
I fully agree with this view and morally correct stand whatever may be legal intricacies that must be fought. I think this could make the meeting of REAL DONORS and REAL BENEFICIARIES relate to each other without middle persons. In fact, FCRA could be further amended making the any development fund apportioned for a local body in a project by a VO, it should be online deposited to the account of local body. Participatory Democracy will get more meaning and added value. THIS WILL BE REAL CHALLENGE OF WORKING WITH THE COMMUNITIES.
I am also of the view that Panchayats cannot directly receive any foreign fund for development works, without permission from the FCRA dept.
GRAM PANCHYATES CANNOT BE TURNED INTO PLAYGROUND OF FOREIGN CONTRIBUTIONS DIRECTLY AS SIMILIAR/SAME ITEMS OF WORKS GET CONTRIBUTIONS FROM DIFFERENT FOREIGN SOURCES CAUSING MORE COMPLEXES IN THE OVERALL MANAGEMENT OF GRAM PANCHAYATES.
Dear Sir,
Kindly note that FCRA 2010 has included Panchayat under the definitation of ‘legislature’. Therefore, no FC funds or Assets can be transferred to a Panchayat as anyone forming part of the legislature is debarred from receiving FC funds.
However, any development work towards the objectives of the NGO cannot not be treated as political activity even if taken up at the Panchayat level. However, there should be no transfer of foreign contribution to a Panchayat. The circumstances under which an organisation can be declared to be an organisation of political nature are provided separately and they do not include any genuine development activity at the grassroots level. Similarly no FC assets can be donated to a Panchayat also. It does not mean to prevent any asset being gifted to the village or community. For instance donating furniture/equipment to the village school. Any such assets may be directly donated provided definite end beneficiaries are there.
Thanks and regards,
B V Soma Sastry
GRAM PANCHAYATS ARE EXPECTED TO WORK WITH INDIGNEOUS RESOURCES, FUNDS, MANPOWER, MATERIALS, LABOUR ETC THAT ARE REQUIRED FOR THEIR DEVELOPMENT. IT IS EXPECTED THAT THEY ARE AVAILABLE LOCALLY.
GRAM PANCHAYATS ARE EXPECTED TO WORK WITH INDIGNEOUS RESOURCES, FUNDS, MANPOWER, MATERIALS, LABOUR ETC THAT ARE REQUIRED FOR THEIR DEVELOPMENT- GREAT. BUT, IF THIS LINE IS TAKEN THEY SHOULD NOT ACCEPT FROM STATE AND CENTRAL GOVERNMENTS ALSO.IN THE SAME VEIN, NO TAX OR NATURAL RESOURCE FLOW TO GOVERNMENT SHOULD BE ALLOWED.
IF THE SAME SPIRIT IS ACCEPTED, IT IS MORE OR EQUALLY APPLICABLE TO VOLUNTARY ORGANISATIONS WHO HAVE VOLUNTARY COME OUT OF VOLITION.
CHARITY BEGINS AT HOME; GRAM PANCHAYATS NEED TO REVIEW FIRST THEIR IN HOUSE RESOURCES AVAILABLE UNLESS OTHERWISE ESSENTIAL AND REQUIRED FOR THE OVERALL DEVELOPMENT AND TECHNICAL FEASIBILITY. IT DOES NOT RESTRICT THEM FROM GOING TO THE DISTRICT, THE STATE OR THE CENTRAL AUTHORITY BUT AN ADVISORY FOR THE OVERALL ECONOMY, AND REGULATION OF RESOUCES.