NCCI convenes meeting on Foreign Contribution Regulation Bill, 2006

The Commission on Polity and National Governance of the National Council of Churches in India (NCCI) – India's largest ecumenical body – convened a meeting of Church leaders, prominent citizens, leading chartered accountants and lawyers on "Foreign Contribution Regulation Bill, 2006," addressing their various concerns, suggestions and proposed formulation of response.

The session was well attended by leaders of various churches and Christian organizations including (Rt.) Rev. Dr. D.K. Sahu, general secretary, NCCI; Rev. Enos Das Pradhan, general secretary, Church of North India (CNI); Rev. Richard Howell, general secretary, Evangelical Fellowship of India (EFI); Mr. Sushant Agarwal, director, Church’s Auxiliary for Social Action (CASA) and Mrs. Sharada M. Rao, vice president, NCCI and Rev. Asir Ebenezer, executive secretary, NCCI Commission on Polity and National Governance.

The Meeting was held in the CNI Bhavan, New Delhi, January 22, 2007. Rev. Enos Das Pradhan, chairperson of the Commission on Polity and National Governance, NCCI, presided over the meeting and introduced the programme while Bishop Sahu welcomed the gathering.

Mr. Sanjay Patra, executive director, Financial Management Services Foundation (FMSF) (a development support organization) made a presentation on the provisions of the proposed Bill, comparing it with the Act of 1976, and expressed serious concerns about some of the new provisions included in the Bill tabled in the Rajya–Sabha on December 18, 2006.

Explaining the implications of the proposed amendments particularly for the churches and Christian organizations, Mr. Patra initiated a round of open discussion wherein everyone agreed that the Bill had become a bureaucratic trap for NGOs and Christian organizations.

Drawing attention to registration procedure and the penal clauses in the Bill, Mr. Patra explained that the Bill, which "suffers from a lack of clarity," could severely affect the functioning of NGOs and curb their activities bringing them under administrative scanner.

"Which is the target – foreign funds or the Indian NGOs?" he wondered, adding, "If it is the former, then why FCR in the first place? And if it is the latter why there is provision for only 50 percent mobility of funds?"

Some of the provisions which drew attention were:
[1] A ceiling of 50 percent on the amount to be spent on administration
[2] The clause "organization of a political nature" in the chapter on those who cannot receive foreign contribution
[3] Renewal once in 5 years
[4] Income accruing from foreign contribution also treated as such
[5] Absence of provision for deemed registration
[6] Individuals receiving foreign contribution also covered under the Act
[7] Definition of foreign source to include Foreign Companies, MNCs, etc.

As the discussion proceeded, chartered accountants associated with various Christian organizations shared their viewpoints and brought up interesting suggestions. It was also resolved that a 'Task Force' would be created comprising of members of different organizations like NCCI, CASA and other Christian organizations.

It was also suggested that a delegation of church leaders would make a representation to the Chairperson of the Parliamentary Standing Committee to which the Bill has been referred as well as the Prime Minister, Home Minister and the Leader of the Opposition in the Parliament and such other leaders, appraising them of the concerns regarding the said Bill.

A suggestion was also made to have a coordination cell formed to disseminate right information with regard to the Bill to the Churches and Church related bodies. As the Bill supposedly targets the alternate development initiatives of NGOs, Action Groups and Churches across the nation, a grassroots mobilization of people for concerted affirmative action was also suggested.

Rev. Howell, who seconded the motion, suggested that the team could analyze the Bill further and subsequently present their opinion about the matter. The need to make a small delegation which could meet the concerned authorities was also felt.

The meeting concluded with a tentative announcement that a further meeting would be held, February 24, to consider the recommendations of the Task Group for the proposed joint action.