Know Foreign Contribution Regulation Act 2010 under which government froze accounts of Missionaries of Charity

After civil liberties group Commonwealth Human Rights Initiative (CHRI), Centre has frozen the bank accounts of Mother Teresa's Missionaries of Charity on December 25. West Bengal Chief Minister Mamata Banerjee tweeted and accused the government of leaving 22,000 patients and more without any treatment and food due to account freeze.

The suspension has been initiated under key provisions of the Foreign Contribution Regulation Act (FCRA) 2010. The CHRI had its Foreign Contributions (FC) suspended around six months ago following which the group moved Delhi High Court. Now, a second suspension order has been issued.

What is Foreign Contribution Regulation Act 2010

The Foreign Contribution (regulation) Act, 2010 is an act of the Parliament of India, by the 42nd Act of 2010.

It is a consolidating act whose scope is to regulate the acceptance and utilisation of foreign contribution or foreign hospitality.

FCRA prohibits acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest.

It is designed to correct shortfalls in the predecessor act of 1976. The bill received presidential assent on September 26, 2010.

According to provisions of Section 13 in the Act, under which the order was passed, the suspension lasts 180 days each time.

Why Missionaries of Charity's account have been frozen

Home Ministry acknowledged that it had rejected to renew the Charity's Foreign Contributions Regulation Act (FCRA) license.

The FCRA registration of Missionaries of Charity was valid upto December 31, 2021. The renewal application was not approved.

The government also said that no request or revision application has been received from MoC for review of this refusal of renewal.

The Charity had not met the eligibility conditions under the FCRA 2010 and Foreign Contribution Regulation Rules (FCRR) 2011.

Missionaries of Charity, founded in 1950 by Mother Teresa runs over 240 homes for orphans, AIDS patients and destitute across India.

Grounds on which suspension orders are passed

Home Ministry has so far granted Foreign Contribution Regulation Act licenses to over 20,000 organisations.

In March 2020, the Government informed Lok Sabha that over a three-year period, the licenses of 6,676 organisations were cancelled. 

September 2021 RTI reply shows in nearly two-year period, 20 suspension orders were issued but no cancellations were done.

Of the 20 suspension orders, five of these are second suspension notices to the same organisation.

The grounds on which six suspension orders were made are the purchase of real estate/land and investments in fixed deposits.

In some it is the non-utilisation of funds or mixing up of domestic and foreign contributions in accounts provided to the FCRA authorities.

In two cases, the stated grounds are utilisation of foreign contribution for religious conversions and construction of mosques.

These activities are prohibited under provisions of the Foreign Contribution Regulation Act (FCRA) 2010.

In one case, it was a charge sheet filed for alleged sexual abuse by the Secretary and Administrator of the organisation.