Foreign Funding of NGOs

The Centre for Internet and Society

Open Magazine

In 1976, at the height of the Emergency imposed by Indira Gandhi, India’s Parliament enacted a piece of legislation called the Foreign Regulation Contribution Act. It prohibited political parties and ‘organisations of a political nature’, civil servants and judges, as also correspondents, columnists and editors/owners of registered newspapers and news broadcasting organisations— and even cartoonists—from receiving foreign contributions.

The very fact that the Act makes a specific reference to cartoonists should be hint enough of the establishment’s paranoia vis-à-vis the ‘invisible hand’ of foreign powers back then. During a Rajya Sabha debate on the proposed bill on 9 March 1976, the term ‘CIA’ (Central Intelligence Agency) was mentioned at least 30 times by different legislators, while ‘Lockheed Martin’ (a military aerospace corporation) came up at least six times in the context of alleged instances of Americans pumping dollars into governments worldwide to buy influence during the Cold War.

The sentiment of the times was captured by the following statement made during that debate by Khurshid Alam Khan, father of India’s present Minister for External Affairs: “The CIA’s doings all over the world have very clearly indicated as to what could be done by foreign money and foreign interference.”

In 2010, a different parliament, with opposition members who had not been imprisoned like those in 1976, unanimously voted to update the law by passing the Foreign Contribution Regulation Act (FCRA). In fact, the Parliamentary Standing Committee that examined the bill was headed by the BJP’s Leader of Opposition in the Lok Sabha Sushma Swaraj, and it had no major objections.

This time round, there was no talk of the CIA or Lockheed Martin. Instead, concern was focused on the increasingly influential role of Non-Governmental Organisations (NGOs) as institutions of civil society in India. The term ‘NGO’ found at least 40 mentions during the Rajya Sabha debate on the 2010 bill. The main concern of the Upper House appeared to be a lack of transparency among NGOs receiving foreign contributions. Hence the calls to strengthen the monitoring regime, although several MPs expressed worry that the new law would give the Centre too much discretionary power to crack down on dissenting NGOs.

Reference: https://cis-india.org/news/openmagazine-article-business-prashant-reddy-march-2-2013-foreign-funding-of-ngos

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