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Wednesday, November 14, 2001

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Bill to curb foreign money

By J. Venkatesan

NEW DELHI, NOV. 13. The Government has decided to repeal the Foreign Contributions (Regulation) Act and enact a new law to curb and regulate flow of foreign funds to terrorist groups, Christian missionaries and non-governmental organisations (NGOs).

According to highly placed sources in the Union Law Ministry, the FCRA has outlived its utility by failing to restrict the flow of funds to various organisations, resulting in the funds being misused and hence the need for a new stringent law.

A draft bill-Foreign Contribution (Management and Control) Bill, 2001-considered to be as ``draconian as the Prevention of Terrorism Ordinance'' has been circulated to the members of the Cabinet for approval and indications are that it will be introduced in the winter session of Parliament.

In the Government's perception, these funds are being misused by the beneficiaries for religious conversions and proselytisation in some States. In the north-eastern States and Jammu and Kashmir, the funds are being used by subversive elements for purchase of arms and ammunitions.

During the last financial year, 1,613 NGOs were granted registration and of them 644 were given prior permission to receive foreign contribution. A total of 1,515 cases for grant of foreign hospitality to government officers and VIPs were processed during the period.

The volume of foreign contributions had gone up to Rs. 4,100 crores during 2000-2001 and had further increased this year and the beneficiaries included academicians, Christian missionaries, media organisations and NGOs.

The new Bill will have various safeguards against the misuse of funds by the beneficiaries. All organisations and individuals receiving foreign contribution will have to register themselves with the respective State Governments, which will receive the registration fees from the beneficiaries.

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