Dear SRRF Friends, 21st December 2011
May I seek the opinion or correct position regarding prior permission as per the recently amended FCRA.
I am closely associated with few organisations working with HelpAge India. These organisations are managing Elderly Self Help Groups- ESGs and each ESHG is given one time annual grant of around Rs.12,500.00. HelpAge India says that as per the new provisions these unregistered bodies that are activities of the association also need prior permission from Ministry of Home Affairs. I differ with them.
If there is a technical ambiguity, it is my opinion that these funds can be given as grants to individual elderly who will in turn park their amount with their ESHG. This is nothing illegal or even immoral, given the sum involved.
What is the position?
V.B.Chandrasekaran,
People’ Peace and Prosperity Mission.
e-mail: verivaan2049@yahoo.com
I am afraid that Mr.Rajeshwar Rao and HelpAge India are trying to be more loyal than king that the poor elderly are put into inconvenience and the project holder into severe stress.
It is not couple of rupees but hundreds crossing thousand and not 60 days- but a wait not knowing how long that worries. Those who have leverage in the Ministry of Home Affairs or willing to bribe may get it in less than 60 days but for all others it is more than 90 days. HelpAge India has the details that can be shared to prove my point.
V.B.Chandrasekaran,
Dear
Looking at sec 7 and sec11 it is clear that indiduals as beneficiary can always receive FCRA monetary grant without any issue Sec7 uses the word transfer and not spend or apply and any FCRA org can apply or spend FCRA funds without any problem Secondly sec11 uses the word programme and an individual receiving foreign money for his personal benefit can never be said to carry out any prg.
Tnx
Deepak
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The HelpAge India position is correct in law since a crucial element of “individuals” too has been brought in specifically under the amended FCRA. The absence of this expansion of definition for persons, allowed us to earlier transfer the monies directly.
For a few rupees and a few pages and a couple of signatures and probably a wait of 60 days, should we be putting the entire programme in jeopardy is the question.
So we have decided to take the route of prior permission.
Rajeshwar
B V Soma Sastry- So we cannot give any amount to an elderly person in our Elderly home as cash pocket money. Regarding morality, I am afraid if the point is diverted. On the same token, if ten lakhs are given as pocket moneyit is immoral or against the spirit of law. If it is a monthly pocket money is hundred ropees or say 1200/- per annum it is moral.
Jnanshekar says: If the amount is transfered directly by HelpAge India, when you say it is okay, what if the recipient organisation does it. Of course, we cannot transfer the funds to ESHG organisation as per the statute.
Dbansal : I agree with you.
With regard to above discussion, I would like to share another pertinent information that Annual Return (FC3/FC6) under Row 10 requests funds utilised for ‘Micro finance projects, including setting up of banking cooperatives and SHGs’.
Dear VB,
In my opinion, if Help Age India transfers the amount directly to individual elderly then prior permission is not required, and if the transfer is to an organization, then it is mandatory to obtain prior permission under amended FCRA.
Regards,
Shekar
Dear Mr. Chandrasekaran,
Greetings from CWS, Hyderabad!
There is no morality or otherwise involved when the issue in question involves statutory compliances. So far as you question is concerned, I agree with the objection raised by Helpage India. As per the provisions of the FCRA 2010, funds cannot be transferred to non FC persons. Here persons include organizations, individuals, associations, HUFs and Section 25 companies.
You have two options as per the provisions of the Act:
1. File FC-10 for seeking permission to transfer funds to non FC groups
2. Approach MoHA for prior approval
The quantum of funds is not a consideration at all. The basic premise is that FC funds should not go to non FC persons.
Thanks and regards,
B V Soma Sastry
Dear Mr Chandrasekharan,
The correct position is that self help groups need permission from FCRA and we can circular and official letter from MHA to us according permission for transfer.
What you are suggesting in your mail is violation of the current law. Though we all have objections on the current law and mr subhash Mittal knows how much we have lobbied for not having the FCRA new law.now that it is law, we need to go by it’s provisions .
Best regards, Mathew
Mathew Cherian
HelpAge India
I fully agree with this view. It is a matter of legal compliance under the new law and not otherwise.
If the funds are given to elderly and then they are depositing funds with eshg then it should not be an issue However in case funds are directly given to eshg then fcra deptt may object
Tnx
Deepak
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