Foreign funds: 1,775 organizations get MHA notice for failing to file FCRA returns

NEW DELHI: The ministry of home affairs has issued show cause notices to 1,775 organisations, including Infosys Foundation, Madras Christian College, Skoda Auto India and University of Rajasthan, for failing to submit their annual income and expenditure on foreign funds for six years despite repeated reminders.

The MHA has warned that if they fail to submit the returns by December 1, 2018, “appropriate action” will be taken against them under Foreign Contribution (Regulation) Act (FCRA).

Other organizations include Shree Siddhivinayak Ganapati Temple Trust, Mumbai, Loyola College Society, Vijayawada, Guru Harkrishan Education Society, Chandigarh and Allahabad Agricultural Institute, National Association for the Blind, Vivekananda Seva Sadan, Bombay Memons' Education Society, Rajiv Gandhi Social Service Centre -Madurai and others.

The FCRA provides that associations registered under the Act shall submit electronically their online annual report with scanned copies of income and expenditure statement, receipts and payment account, balance sheet, etc, for every financial year within nine months of the closure of the financial year.

Such associations which do not receive foreign contribution during a particular year are also required to furnish a NIL return for that financial year within the aforesaid period.

The home ministry said after scrutiny of records for the years 2011-12 to 2016-17, it has been observed that the annual report/accounts for some of the financial years in the aforesaid period have not been found uploaded on the FCRA portal online by the said associations despite the fact that one final opportunity of one month was provided to all such associations to submit the missing annual reports without paying any penalty on May 12, 2017.

Another notice was served on April 24, 2018 to these associations advising them to submit annual report/accounts of the missing years electronically online immediately.

However, the said associations have failed to submit annual report/accounts of the missing year(s) electronically online till date despite notices, the ministry said.

“Therefore, the said associations are hereby directed to explain within a period of 15 days from the date of issue of this show cause notice as to why appropriate action under the FCRA may not be initiated against them,” it said.