The Foreign Contribution Regulation Act 2010 has reshaped the space for NGOs in India and strained the right to associate under Article 19(1)(c). Comment.
Subtopic: Governance · NGO Regulation & Civic Space
How to structure your answer
Introduction: The FCRA 2010 replaced the 1976 Act and was tightened by the 2020 amendment to channel all foreign funds through a designated SBI Parliament Street branch.
Body: Three dimensions — (i) statutory tightening — Section 7 ban on sub-grants, mandatory Aadhaar of office bearers, and tightened renewal under Sections 11 and 16; (ii) impact — FCRA registrations fell from over 22,400 in 2017 to under 16,000 by 2024 according to MHA disclosures; (iii) constitutional test — Noel Harper v. Union of India (2022) upheld the amendments under Article 19(1)(c) and Article 14, while Indian Social Action Forum v. Union of India (2020) preserved political-activity restrictions.
Way forward / Conclusion: A reasoned renewal process with appellate review and a narrower definition of 'political activity' would reconcile the security purpose with constitutional freedoms.
Written within the word limit
127 words · target 150 words · 9 min
Introduction: The Foreign Contribution Regulation Act 2010, replacing the 1976 Act and tightened by the 2020 amendment, channels all foreign funds through a designated SBI New Delhi Main Branch, with Section 7 banning sub-grants.
Body: Three dimensions frame the strain on Article 19(1)(c). First, statutory tightening — Section 7's sub-grant ban, Aadhaar of office-bearers, the 20% administrative-expense cap (Section 8) and stricter renewal under Sections 11 and 16. Second, impact — Ministry of Home Affairs data shows FCRA registrations fell from over 22,400 in 2017 to under 16,000 by 2024. Third, constitutional test — Noel Harper v. Union of India (2022) upheld the 2020 amendments under Articles 19(1)(c) and 14, ruling foreign contribution a regulated privilege, while Indian Social Action Forum (2020) preserved political-activity restrictions.
Conclusion: A risk-tiered FCRA with appellate review and a narrower 'political activity' definition would reconcile FATF expectations with Article 19(1)(c) freedoms.
What an examiner expects to see
- Foreign Contribution Regulation Act 2010 and FCRA (Amendment) Act 2020
- Section 7 — bar on transfer of foreign contribution to other organisations
- Designated SBI New Delhi Main Branch for all FCRA inflows
- Article 19(1)(c) right to form associations — reasonable restriction under 19(4)
- Noel Harper v. Union of India (2022) upheld 2020 amendments
- Indian Social Action Forum v. Union of India (2020) on 'political' activity
- FCRA registrations declined from approximately 22,400 in 2017 to under 16,000 in 2024 (MHA annual data)
Concrete cases, schemes and judgments
- Noel Harper v. Union of India (2022)
- Centre for Policy Research FCRA cancellation 2024
- Oxfam India and Compassion International cases
- Indian Social Action Forum v. Union of India (2020)
- FATF Mutual Evaluation Report 2024 on India