Rajya Sabha passes bill to regulate foreign funds

NEW DELHI - A bill seeking to frame stricter regulations for foreign contributions in form of gifts, funds and other forms to individuals and organisations in social fields was passed by the Rajya Sabha Thursday.

The Foreign Contribution (Regulation) Bill, 2006, aims to regulate the acceptance and utilisation of foreign contributions or foreign hospitality by certain individuals or associations or companies. It also seeks to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest.

It will replace the Foreign Contribution (Regulation) Act, 1976.

Giving clarifications on the bill, Home Minister P. Chidambaram said the bill was needed in view of the growing security concerns.

“The bill will ensure more transparency. Presently, almost half of the contributions are not reported,” he said.

“No person having a definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless such person obtains a certificate of registration from the central government,” the bill says.

It also prohibits all organisations of a “political nature” from receiving any foreign contribution. It gives the central government powers to classify any organisation in this category.

Clearing doubts expressed by the members on the criteria for defining “political organisations”, Chidambaram said that norms will be laid down and the decision will be taken through a transparent procedure.

The bill adds that the central government may deny, suspend or cancel certification under certain conditions.