The Bill proposes that not more than 20% of the total foreign funds received could be defrayed for administrative expenses, presently the limit is 50%.

Centre is all set to amend the Foreign Contribution (Regulation) Act and proposes to make Aadhar a mandatory identification document for all the office bearers, directors and other key functionaries of an NGO or an association eligible to receive foreign donations.
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A draft of the Bill says that the amendment is required to enhance transparency and accountability in the receipt and utilisation of foreign contribution worth thousands of crores of rupees every year and facilitating genuine non-Governmental organisations or associations who are working for the welfare of the society.
The Foreign Contribution (Regulation) Amendment Bill, 2020 is likely to be introduced in the Lok Sabha on Sunday.
The Bill proposes to include public servant and corporation owned or controlled by the Government among the list of entities who are not eligible to receive foreign donations, the draft says.
Amendment of clause (c) of sub-section (1) of section 3 to include “public servant” also within its ambit, to provide that no foreign contribution shall be accepted by any public servant, the Bill says.
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In 2016, the Home ministry cancelled the license of Lawyers Collective, run by noted lawyers Indira Jaising and Anand Grover for various violations. The ministry in its suspension notice had said that Ms. Jaising as a government servant received foreign funds over 96 crore when she held the post of Additional Solicitor General (ASG) between the years 2009-14, in violation of FCRA norms. Ms. Jaising refuted the ministrys allegations and had said that she was a public servant not government servant.
 FCRA regulates foreign donations and ensures that such contributions do not adversely affect the internal security of the country. The Act, first enacted in 1976 was amended in the year 2010 when a slew of new measures were taken by the Union Home Ministry to regulate foreign donations.
The Bill proposes that not more than 20% of the total foreign funds received could be defrayed for administrative expenses, presently the limit is 50%.
The Statement of Objects and Reasons of the Bill further states, The Foreign Contribution (Regulation) Act, 2010 was enacted to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.
 The draft says that the said Act has come into force on May 1, 2011 and has been amended twice. The first amendment was made by section 236 of the Finance Act, 2016 and the second amendment was made by section 220 of the Finance Act, 2018.
The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the said Act. Many of them were also found wanting in ensuring basic statutory compliances such as submission of annual returns and maintenance of proper accounts. This has led to a situation where the Central Government had to cancel certificates of registration of more than 19,000 recipient organisations, including non-Governmental organisations, during the period between 2011 and 2019. The criminal investigations also had to be initiated against dozens of such non-Governmental organisations which indulged in outright misappropriation or mis-utilisation of foreign contribution, the draft said.