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Source: This post is based on the article “Seeking to destroy India’s civil society” published in The Hindu on 27th July 2022.
Syllabus: GS 2 – the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.
Relevance: About recent restrictions on civil society organisations.
News: There is a suspicion that the government is attacking non-governmental organisations (NGOs) and civil society.
Why do civil society organisations need to be regulated?
Minority rights were deemed essential for the consolidation of the Indian state where citizens needed to feel a sense of belonging. The Constitution and law sought to protect minority communities and mandated equal rights and protection from the state to persons of all faiths and identities.
Civil society organisations need to be regulated for defending those values. The Foreign Contributions (Regulation) Act (FCRA), and the Prevention of Money Laundering Act (PMLA), are used in conjunction with a range of other measures such as the Unlawful Activities Prevention Act (UAPA) for regulating Civil society organisations.
| Read more: On FCRA & NGOs: Killing the license |
What are the recent restrictions placed on CSOs by the government?
2010 amendment of FCRA: The FCRA amended in 2010 gave substantial discretionary powers to the state to deal with NGOs. NGOs now needed to renew their licences every five years.
More than 20,000 civil society organisations that lost their registration between 2011 and May 2022. More than 16,000 NGOs were denied registration between 2015 and 2022.
2020 amendment of FCRA: This amendment forced NGOs to spend less on administrative costs. Finally, all NGOs were required to operate their foreign accounts through the State Bank of India’s branch located on Parliament Street in New Delhi.
| Read more: Govt. curbs funding for 10 climate change, child labour NGOs |
Application of PMLA: The Enforcement Directorate (ED) of the Department of Revenue has wide-ranging powers to search and arrest citizens under the PMLA. This provision was used by the government to curb the activities of NGOs and political dissenters.
Other restrictions: a) In 2020, the government announced that the tax-free status of domestic donations would be reviewed every five years, b) The government grants were largely discontinued.
| Read more: Impact of New FCRA Rules on Relief Work of NGOs – Explained, Pointwise |
Social values can be saved if democratic politics protects those values. Excessive control over NGOs restricts the pluralistic nature of Indian society that is at the heart of India’s democracy.
