Friday, March 24, 2017

Foreign Contribution Regulation Act Amendment

Facts:
1. Contributions made by the Indian companies with foreign holding up to the prescribed limit as per extant FDI policy will not be treated as foreign contribution retrospectively from September 2010.

The government has admitted that the amended Foreign Contribution Regulation Act (FCRA), 2010, which they brought in through the Finance Bill route, will not only help foreign-origin companies to fund NGOs here but has also cleared the way for them to give “donations to political parties.”

Kiren Rijiju's Opinion:
Minister of State (Home) Kiren Rijiju told The Hindu that the amendment, which was cleared by the Lok Sabha in the recently concluded Budget session, will ensure that “donations made by such [foreign shareholding] companies to entities including political parties will not attract provisions of the FCRA, 2010.”

Questions:
Does this mean the government has changed its opinion on what it sees as foreign conspiracy to derail our democracy? Especially with regard to NGOs who do not toe government line on issues.

Source: http://www.thehindu.com/news/national/foreign-firms-can-now-fund-parties/article8604763.ece

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